Board  of 
Estimate  and  Apportionment 


REPORT      ' 

OMMITTEE    ON    FRANCHISES 

IN  RELATION  TO  PENDING  PE1\  :      NS 
FOR    THE    RIGHT   TO    OPERATF 

MOTOR  BUS  ROUTES 

IN'    THF. 

BOROUGH    OF    MANHATTAN 

Will  i 

PROPOSED  FORM  OF  CONTRACT 


'XTOBER   13,  r" 


BUREAU  OF  FRANCHISE; 
ROOM   1307 

MLNICIPU,   fU.lLDlNC. 


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'^^.  boifo^ 


Board  of 
Estimate  and  Apportionment 


REPORT  OF 

COMMITTEE    ON    FRANCHISES 

IN  RELATION  TO  PENDING  PETITIONS 
FOR    THE    RIGHT    TO    OPERATE 

MOTOR  BUS  ROUTES 

IN    THE 

BOROUGH    OF    MANHATTAN 

WITH 
PROPOSED  FORM  OF  CONTRACT 


OCTOBER  15,  I9I5 


BUREAU  OF  FRANCHISES 

ROOM    1307 
MUNICIPAL  BUILDING 


M.  B.  Beown   Pbinting  i  Binding  Co., 
37-41    Chambers    Street.    N.    Y. 


City  of  New  York, 
Board  of  Estimate  and  Apportionment, 

October  IS,  1915. 

To  the  Board  of  Estimate  and  Apportionment: 

Gentlemen — The  Franchise  Committee,  to  which  has  been  referred  the  question 
of  the  advisability  of  granting  the  right  to  operate  additional  motor  omnibus'  routes 
in  the  Borough  of  Manhattan,  begs  to  present  its  report  thereon  and  submit  for  your 
consideration  a  form  of  contract,  which  is  herein  recommended  be  granted  to  one  of 
the  applicant  companies. 

Your  Committee  recognizes  the  urgent  needs  of  transit  facilities  in  certain  dis- 
tricts in  the  Borough  of  Manhattan,  and  has  therefore  viewed  with  much  interest  the 
pending  applications  as'  having  an  important  effect  on  the  needs  of  the  community. 
It  seems  desirable  that  there  be  included  in  this  report  a  brief  statement  of  the 
action  with  respect  to  motor  buses  already  taken  by  the  Board,  as  well  as  of  the 
various  steps  taken  by  your  Committee  before  arriving  at  the  conclusions  herein 
presented. 

But  one  stage  coach  or  omnibus  company  has.  during  recent  years,  been  author- 
ized to  operate  in  the  Borough  of  Manhattan.  Prior  to  the  year  1913  the  laws  were 
such  that  the  company  had  and  would  continue  to  have  a  virtual  monopoly  unless 
amendments  were  affected  by  the  legislature.  Obligations,  which  in  many  cases  were 
impossible  to  fulfill,  were  required  of  new  corporations,  while  practically  no  condi- 
tions were  imposed  on  the  existing  corporation.  The  attention  of  the  Board  was 
directed  to  this  condition  by  a  report  of  the  Bureau  of  Franchises,  which  recom- 
mended amendments  to  the  law,  designed  to  remove  this  inequality.  The  Board 
immediately  took  the  necessary  action  to  obtain  the  legislation,  resulting  in  the  enact- 
ment of  chapter  769  of  the  Laws  of  1913,  which  law  accomplished  the  object  sought. 

The  Board  at  that  time  had  before  it  one  petition  for  the  right  to  operate  omni- 
buses, which  had  been  presented  by  the  New  York  Motor  Bus  Company.  Inc.,  under 
date  of  December  19,  1912.  Subsequent  to  the  enactment  of  the  new  law  the  Board 
received  petitions  from  three  other  companies',  namely :  the  Manhattan  Motor  Bus 
Company,  Inc..  the  Fifth  Avenue  Coach  Company  and  the  People's  Five  Cent  Bus 
Corporation.  All  of  the  petitions  were  referred  to  the  Bureau  of  Franchises  for 
report. 

It  was  well  known  that  motor  omnibuses  had,  during  a  number  of  years,  been 
used  to  a  very  large  extent  and  with  apparent  success  in  several  European  cities, 
notably  London  and  Paris.  Because  of  the  limited  experience  with  these  vehicles  in 
New  York,  a  representative  of  the  Bureau  of  Franchises,  pursuant  to  the  authority 
of  a  resolution  of  the  Board,  was  sent  abroad  for  the  purpose  of  investigating  the 
operation  of  motor  omnibuses  in  London  and  Paris,  with  a  view  to  obtaining  such 
information  relative  thereto  as  would  aid  the  City  in  reaching  a  determination  upon 


the  proposed  operation  of  motor  omnibuses  in  this  City.  The  report  upon  this 
investigation  was  presented  to  the  Board  in  November,  1913,  and  was  quite  illuminative 
in  that  it  showed  particularly  what  should  be  (guarded  against  and  pointed  out  the 
necessity  for  strict  regulation  of  the  service.  The  report  was  referred  to  your 
Committee  to  recommend  a  policy  to  be  followed  with  reference  to  the  pending 
applications. 

Your  Committee  agreed  that  there  arc  points  in  the  Borough  of  Manhattan 
between  which  there  is  no  direct  means'  of  transportation,  though  the  need  for  such 
facilities  is  quite  apparent.  It  was  recopnized.  however,  that  to  merely  operate  lines 
connecting  the  points  between  which  facilities  are  urgently  needed  would  result  in  a 
system  of  disconnected  routes,  unattractive  to  the  operator  and  less  serviceable  to  the 
traveling  public  than  a  more  comprehensive  system.  For  example,  cross-town  lines 
through  Central  Park,  operated  alone,  would  be  of  less  service  than  similar  lines 
operated  in  conjunction  with  longitudinal  lines  on  both  the  East  and  West  Sides 
with  transfer  privileges.  Consequently  the  Bureau  of  Franchises  was  directed  to 
lay  out  a  comprehensive  system  of  routes  and  to  draft  a  form  of  franchise  contract 
which  it  would  recommend  for  the  franchise. 

After  your  Committee  had  considered  the  system  of  routes  and  form  of  contract 
submitted  by  the  Bureau  of  Franchises,  it  ordered  the  same  printed  for  distribution 
and  advertised  a  public  hearing  thereon,  to  be  held  on  December  18,  1914.  At  this 
hearing  there  were  heard  many  property  owners  and  representatives  of  civic  associa- 
tions, ■  the  applicant  companies  and  the  street  railway  companies  operating  in  the 
Borough  of  Manhattan.  So  much  interest  was  taken  in  the  matter  that  an  adjourned 
hearing  was  held  on  December  29  and  still  another  on  December  31,  1914.  At  the 
close  of  the  hearings  the  applicant  companies  and  others  were  given  until  January  9, 
1915,  to  file  briefs.  Your  Committee  received  before  and  subsequent  to  the  hearing 
hundreds  of  communications  in  favor  of  and  against  the  granting  of  specific  routes 
and  in  favor  of  and  against  the  proposal  of  some  particular  applicant,  as  set  forth  in 
its  petition.  Several  meetings  of  the  Committee  were  subsequently  held  at  which  the 
suggestions  and  criticisms  contained  in  the  communications  and  briefs  were  consid- 
ered. Many  modifications  of  the  routes  and  of  the  contract  were  made  as  a  result. 
After  these  modifications,  the  contract  and  the  map  of  the  routes  were  again  printed 
for  distribution  and  on  April  27,  1915,  a  further  public  hearing  was  held. 

In  laying  out  the  system  of  routes  finally  adopted,  your  Committee  has  followed 
three  principles : 

First — That  the  system  should  be  a  comprehensive  one. 

Second — It    should    contain    routes   giving    facilities   between    various    points 

where  none  now  exist,  and 

Third — That  the  routes  should   be  such   as  to  directly  compete  as  little  as 

possible  with  existing  transit  systems. 

The  form  of  contract  for  a  franchise  finally  adopted  contains  clauses  providing 
for  most  complete  regulation  as  to  the  weight  and  dimensions  of  vehicles  and  as  to 
their  operation.  It  is  unique  in  that  provision  is  made  for  extension  upon  order  of 
the  Board,  and  routes  may,  within  certain  fixed  limits,  be  modified  to  conform  with 
traffic  conditions.     The  system  of  routes  adopted  by  the  Committee  in  no  way  con- 


forms  with  that  applied  for  by  any  of  the  applicants.  In  consequence  it  was  decided 
by  the  Committee  to  ask  each  of  the  applicant  companies  to  submit  proposals  based 
upon  the  form  of  contract  and  system  of  routes  adopted  by  the  Committee.  The  con- 
ditions upon  which  the  proposals  were  to  be  made  were  outlined  in  the  letter 
addressed  to  the  applicants  by  the  Committee  (See  Appendix  A).  The  form  of  con- 
tract left  blank  the  provisions  for  compensation  to  the  City,  the  date  upon  which  the 
operation  should  commence,  the  maximum  weight  and  dimensions  of  vehicles  (the 
maximum  weight  and  dimensions  adopted  by  the  Committee  being  indicated),  the 
maximum  rate  of  fare,  the  headway  of  vehicles  and  the  conditions  under  which  the 
Board  may  order  extensions. 

Four  proposals  were  received  and  publicly  opened  by  the  Acting  Mayor  on  behalf 
of  the  Committee  on  June  1,  1915,  at  noon.  After  these  proposals  had  been  read  and 
the  meeting  adjourned  a  communication  was  received  from  the  Manhattan  Motor  Bus 
Company,  one  of  the  original  applicants,  submitting  a  proposal  based  upon  a  plan  of 
sharing  the  operating  profits  with  the  City  after  first  deducting  eight  per  cent,  upon 
the  investment.  Your  Committee  has  refused  to  receive  this  proposal  for  the 
reason  that  it  was  presented  to  the  Committee  after  the  hour  fixed  for  the  opening 
of  the  proposals.  If  it  had  been  received  it  would  have  been  rejected  for  the  reason 
that  the  proposal  was  incomplete  in  that  no  effort  had  been  made  on  the  part  of 
the  Company  to  modify  the  contract  adopted  by  the  Committee  in  accordance  with 
the  terms  of  its  proposal.  Therefore,  the  proposal  could  not  be  compared  with  the 
others  which  had  been  submitted  in  complete  form. 

The  proposals  opened  and  publicly  read  were:  Two  by  the  Fifth  Avenue  Coach 
Company,  one  by  the  New  York  Motor  Bus  Company,  Inc.,  and  one  by  .Messrs. 
O.  C.  Brunner  and  W.  T.  Gridley,  jointly.  The  last  named  had  no  pending  applica- 
tion for  a  franchise. 

Your  Committee  has  made  a  careful  study  of  these  proposals  and  of  the  analysis 
and  comparison  of  the  same  made  by  the  Bureau  of  Franchises,  and  beg  to  submit 
the  following  with  respect  thereto: 

Proposal  of  O.   C.  Brunner  and   W.   T.  Gridley    (Jointly). 

This  proposal  is  incomplete.  It  shows  that  the  proponents  are  unfamiliar  with  the 
previous  negotiations,  and  it  is  not  based  primarily  on  the  form  of  contract  submitted 
by  the  Committee.  It  was  therefore  impossible  to  make  a  comparison  with  the  other 
bids.  It  offers  no  guaranteed  minimum  annual  payments,  nor  does  it  offer  an  initial 
payment.  The  type  of  vehicle  has  evidently  not  been  considered.  The  zones  into 
which  it  proposes  to  divide  the  City  are  not  given,  therefore  the  rate  of  fare  is  not 
accurately  stated.    There  is  no  definite  offer  in  regard  to  extensions. 

It  is  therefore  the  opinion  of  the  Committee  that  this  proposal  should  be  rejected. 

Proposal  No.  2  of  the  Fifth  Avenue  Coach  Company,  the  Present  Operating  Company. 

This  is  a  proposal  in  which  the  prominent  feature  is  an  offer  to  divide  equally  with 

the  City  the  net  profits  in  excess  of  a  sum  equal  to  the  net  operating  profits  from  the 

existing  routes  for  the  year  ending  June  30,  1915.     The  net  profits  are  to  be  those 


accruing  from  both  the  existing  and  new  routes,  and  are  defined  as  any  and  all  in- 
come or  profits  from  whatever  source,  less  deductions,  as  follows : 

1.     All  taxes  against  the  Company  in  connection  with  or  incident  to  the  operation 

of  the  Company's  routes. 
2.-   All  operating  expenses,  including  reasonable  maintenance,  depreciation  and  ob- 
-   solescence. 

3.  A  sum  equal  to  6  per  cent,  per  annum,  on  plant  and  equipment  furnished  for 

the  operation  of  new  routes  or  future  extensions  thereof  and  upon  cost 
of  additional  equipment  for  existing  routes,  together  with  such  sum  neces- 
sary to  amortize  within  the  period  of  25  years  the  equipment  for  the  opera- 
tion of  the  new  routes  or  extensions  thereof. 

4.  .'\  sum  equal  to  net  profits  from  the  existing  routes  for  year  ending  June  30, 

1915. 

If  there  be  a  deficit  in  any  year  after  such  deductions,  the  same  shall  be  cumulative 
and  must  be  made  up  with  interest,  compounded  semi-annually  at  five  per  cent,  per 
annum,  before  the  City  is  entitled  to  any  of  the  net  profits.  In  case  of  disagreement 
as  to  the  amount  of  depreciation,  obsolescence  and  amortization,  it  shall  be  submitted 
to  arbitration. 

Under  this  offer  the  existing  and  proposed  new  lines  would  be  merged  and  operated 
as  one  system  and  would  practically  be  put  on  the  same  basis,  sirKe  the  Company  agrees 
to  accept  the  net  profits  for  the  year  ending  June  30,  1915,  as  the  annual  profits  for  the 
existing  lines  during  the  term  of  the  grant. 

Any  plan  for  the  operation  of  a  public  utility  on  the  profit  sharing  basis  requires 
an  accurate  and  fair  determination  of  the  net  profits,  and  should  therefore  provide  a 
manner  by  which  each  party  shall  have  at  least  sufficient  supervising  power  to  protect 
itself  against  expenditures  detrimental  to  its  interests.  A  method  should  also  be 
provided  whereby  the  sums  expended  should  be  authorized  after  a  fair  determination 
as  to  their  necessity.  There  is  no  hint  of  any  such  control  in  this  proposal  of  the  Fifth 
Avenue  Coach  Company.  For  example,  the  sums  representing  reasonable  maintenance, 
depreciation  and  obsolescence  must  be  determined ;  so  must  also  the  rate  of  amortiza- 
tion to  be  applied  to  the  equipment  of  the  new  routes  or  extensions  thereof;  likewise 
the  cost  of  the  plant  and  equipment  to  be  furnished  for  the  operation  of  new  routes 
or  future  extensions  and  the  cost  of  the  additional  equipment  for  the  existing  lines. 
In  fixing  all  these  items,  disagreement  between  the  City  and  the  Company  is  almost 
certain  to  appear.  It  is  true  the  Company  proposes  that  in  case  of  a  disagreement  as 
to  the  amount  of  depreciation,  obsolescence  or  amortization,  arbitration  may  be  re- 
sorted to,  but  there  is  no  such  provision  with  respect  to  a  disagreement  as  to  the  amount 
expended  for  maintenance  or  the  determination  of  the  amounts  upon  which  six  per 
cent,  per  annum  is  to  be  computed. 

The  City  has  had  one  notable  experience  with  the  profit  sharing  plan,  where  the 
City  did  not  by  the  terms  of  the  franchise  have  any  supervision  over  expenditures 
either  in  the  original  investment  or  in  subsequent  operations.  The  result  has  been  such 
that  one  could  hardly  conscientiously  recommend  another  similar  grant. 

The  certificates  of  the  Public  Service  Commission  for  the  extensions  of  the  ele- 


vated  railroad  system  of  the  Inlerborough  Rapid  Transit  Company  :md  the  New  York 
Municipal  Railway  Corporation  provide  for  a  division  of  profits  with  the  City,  but 
unlike  the  proposal  of  the  Fifth  Avenue  Coach  Company,  these  certificates  provide 
for  the  full  and  complete  supervision  of  all  operations  in  connection  with  the  enter- 
prise of  construction,  equipment,  maintenance  and  operation.  The  certificates  them- 
selves state  that  it  is  the  intention  of  the  Commission  that  the  certificates  shall  be  con- 
strued in  such  a  manner  that  the  City  shall  be  afforded  all  proper  and  necessary  means 
of  safeguarding  its  right  to  one-half  the  excess  of  net  profits.  However,  the  City's 
experience  with  respect  to  these  certificates  has  not  as  yet  been  sufficient  to  base  thereon 
any  conclusion. 

There  are  other  objections  to  the  proposal  which  would  justify  the  Committee's 
recommending  its  rejection,  but  it  is  believed  that  the  one  given  is  sufficiently  apparent 
to  make  further  discussion  needless. 

Your  Committee  recommends  that  this  proposal  be  rejected. 

Comparison  of  Proposal  No.   1   of  tiik  Fifth   Avenue  Ciuch   Company  with   the 
Proposal  of  thf.  New  York  Motor  Bus  Company,  Inc. 
Routes  Prof'oscd  to  be  Ol>cratcd. 
l-'iflh  .Izcitue  Coach  Conitaity — This   Company,  generally   speaking,  adopted  the 
routes  proposed  by  the  Committee,  with  the  following  exceptions : 

(a)  The  routes  upon  which  the  Company  is  already  operating. 

(b)  The  portion  of  the  West  Side  Route  between  72nd  Street  and  135th  Street, 

the  Company  proposing  to  substitute  its  own  route  on  Riverside  Drive 
to  take  the  place  of  that  portion  of  the  West  Side  Route. 

(c)  Manhattan  Street  and  12Sth  Street  Route. 

(d)  Convent  Avenue  Route  (Already  operated  by  the  Company). 

(e)  Columbia  University  Loop  and  connection  with  110th  Street. 

(f)  The  Crosstown  Route  in  39th  and  40th  Streets. 

In  addition  to  the  above,  certain  minor  changes  and  additions  are  made  in  the 
system  adopted  by  the  Committee.  It  will  be  noted  from  the  above  that  the  system 
adopted  by  the  Committee  has  been  amended  to  enable  the  Company  to  operate  the 
new  routes  in  conjunction  with  the  existing  system. 

Nnv  York  Motor  Bus  Company,  Inc. — This  Company,  generally  speaking,  adopted 
all  the  routes  proposed  by  the  Committee,  with  the  following  exceptions : 

(a)  The  St.  Nicholas  Avenue,  Edgecombe  Road  and  167th  Street  Route,  for  the 

reason  that  the  Fifth  Avenue  Coach  Company  is  already  operating  upon 
the  portion  of  this  route  which  lies  south  of  155th  Street. 

(b)  .\  portion  of  the  loop  around  Columbia  University  and  its  connection  with 

110th  Street. 

The  Company  proposed  certain  routes  in  addition  to  those  adopted  by  the  Com- 
mittee, which  it  states  may  be  included  in  its  proposal  at  the  option  of  the  City,  but 
which  arc  not  made  a  necessary  part  of  the  proposal  by  the  applicant.  These  routes 
consist  of : 

1.    Minor  changes  and  additions,  such  as  streets  necessary  to  make  loop  terminals. 


8 

2.  The  substitution  of   Broadway   from  72nd  Street  to  107fh  Street   for  Amster- 

dam Avenue,  86th  Street  and  West  End  Avenue. 

3.  Fiftli  Avenue,  from  26th  Street  to  48tli   Street;   I'.roadvvay   from  39th  Street 

to  34th  Street;  31st,  32iid,  33ril,  3-lth  and  46th  Streets,  between  the  East  and 
West  Side  Routes. 
The  four  crosstown  streets  in  the  vicinity  of  34th  Street  are  selected  for  the  pur- 
pose of  forming  one  crosstown  route  only,  the  actual  operation  of  such  route  to  lake 
place  in  such  streets  as  will  ofTer  the  greatest  convenience  and  conform  with  trafTic 
conditions. 

Forty-sixth  Street  is  selected  by  the  Company  as  a  substitute  for  48th  Street. 
It  is  stated  that  the  Company  believes  that  46th  and  47h  Streets  would  make  a  better 
crosstown  route  than  would  47th  and  48th  Streets. 

Both  of  these  proposals  arc  based  upon  the  form  of  contract  adopted  by  the  Com- 
mittee and  arc  submitted  in  such  form  tliat  a  direct  comparison  of  the  two  proposals 
can  be  made. 

Each  Company  has  made  certain  changes  in  the  form  of  contract  in  addition  to 
submitting  proposals  for  the  clauses  which  the  Committee  left  blank.  In  an  analysis, 
therefore,  of  the  two  proposals  the  clauses  divide  themselves  naturally  into  three 
classes : 

First — Those   for  which  amendments  are  asked  by  the  Fifth  Avenue  Coach 
Company,  but  which  arc  accepted  by  the  New  York  Motor  Bus  Company. 
Second — Those  for  which  amendments  are  asked  by  both  Companies. 
Third — Those  with  respect  to  which  the  Committee  requested  the  Companies 
to  submit  proposals. 
Each  class  is  herein  discussed  in  the  order  named  above. 

First — Clauses  for  Which  Amendments  are  Asked  by  the  Fifth  Avenue 
Coach  Company,  but  Which  .Are  .Accepted  by  the  N'nw  York  Motor  Bus  Com- 
pany. 

1.  The  Company  asks  that  section  2,  subdivision  fourth,  which  provides  that  the 
right  granted  shall  not  be  exclusive,  be  amended  by  adding  the  provision  that  if  any 
loss  of  revenue  results  from  the  granting  of  a  franchise  to  another  company  on  the 
same  route,  then  such  loss  of  revenue  shall  be  ascertained  and  fixed,  cither  by  agree- 
ment or  by  arbitration,  and  the  damage  deducted  from  the  franchise  payments  for 
either  the  existing  routes  of  the  Company  or  new  routes  for  which  a  franchise  is  pro- 
posed to  be  granted. 

The  Constitution  of  the  State  of  New  York  prohibits  the  granting  of  an  exclu- 
sive franchise.  Therefore,  any  grant  which  the  City  may  make  would  not  be  an  exclu- 
sive one,  even  if  the  clause  in  question  were  omitted.  The  reason  for  inserting  the 
clause  in  franchises  other  than  for  street  railways,  which  the  Board  has  granted  dur- 
ing the  past  ten  years  is  that  there  can  thereafter  be  no  misunderstanding  with  re- 
spect to  the  intent  of  the  City  in  making  the  grant.  The  modification  of  the  clause 
suggested,  whereby  the  City  would  be  penalized  in  carrying  out  the  provisions  of  the 
Constitution  would  tend  to  estop  the  City  from  granting  similar  rights,  and,  in  effect, 


make  the  original  grant  an  exclusive  one.  The  clause  might  better  be  omitted  entirely 
than  modified  as  requested  by  the  Fifth  Avenue  Coach  Company. 

There  is,  however,  another  feature  of  this  proposed  amendment  which  deserves 
attention.  Can  the  City  fix  conditions  for  a  new  franchise  to  this  Company  which  will, 
in  eflfect,  modify  the  conditions  of  the  existing  franchise?  The  Company  is  now 
operating  under  laws  which  require  the  payment  to  the  City  of  five  per  cent,  of  its 
gross  receipts,  and  annual  car  license  fees  of  twenty  dollars  ($20)  per  car.  The 
amendment  proposed  by  the  Company  for  the  so-called  non-exclusive  clause  might  in 
effect  result  in  tlie  reduction  of  the  payments  under  the  existing  franchise.  Your  Com- 
mittee feels  that  such  an  amendment  could  not  be  accepted. 

Another  important  point  with  respect  to  this  amendment  is  that  it  would  prac- 
tically be  impossible  to  determine  the  amount  of  the  loss  of  revenue  resulting  from 
the  granting  of  a  franchise  to  another  company  on  the  same  route. 

2.  Section  2,  fifth,  whicli  provides  that  the  City  may  purchase  the  property  of  the 
Company  at  the  end  of  the  term  of  grant,  has  been  modified  by  requiring  the  City 
to  give  the  Company  six  months'  notice  before  the  end  of  the  term  of  grant  should  the 
City  decide  to  purchase  the  property.  The  Committee  does  not  feel  that  there  should 
be  any  objection  to  such  proposed  amendment. 

3.  Section  2,  Subdivisions  Sixteenth  and  Seventeenth,  have  been  amended  by 
eliminating  the  provision  which  permits  the  Board  to  require  withdrawal  of  vehicles 
from  service  should  defects  develop  which  would  render  them  unsuitable  for  public 
service  after  having  been  approved  by  the  Board. 

This  is  supervision  which  the  Board  should  have.  If  exercised,  it  would  tend 
toward  the  general  betterment  of  the  type  of  vehicle,  a  matter  in  which  the  City  is 
vitally  interested  if  it  is  to  authorize  the  operation  of  self-propelled  passenger 
vehicles  in  public  streets. 

4.  Section  2,  Subdivision  Eighteenth,  has  been  amended  by  providing  that  the 
Company  will  only  obligate  itself  to  comply  with  laws  and  ordinances  not  inconsistent 
with  the  prii-ilege  conferred  under  the  contract.  The  clause  adopted  by  the  Com- 
mittee requires  the  Company  to  comply  with  all  laws  and  ordinances. 

Manifestly  the  City  cannot,  by  the  terms  of  the  contract,  relieve  the  Company 
from  its  obligations  under  any  law  or  ordinance.  The  Committee  feels  that  it  cannot 
recommend  a  nio<lilicatiun  similar  to  that  proposed  by  the  Company. 

5.  Section  2,  Subdivision  Twenty- fourth,  is  amended  by  adding  thereto  a  pro- 
vision to  the  effect  that  if  the  Company  does  not  consent  to  a  substitution  of  route 
when  ordered  by  the  Board,  then,  if  such  substitution  is  made  without  such  consent, 
the  net  loss  of  revenue  by  reason  of  such  change  shall  be  ascertained,  fixed  and  ad- 
justed between  the  City  and  the  Company. 

It  is  believed  tliat  the  substitution  of  routes  upon  order  of  the  City  is  one  of  the 
more  important  provisions  of  the  franchise.  The  mobility  of  the  motor  bus  makes 
the  substitution  of  routes  possible  where  it  would  be  impracticable  in  the  case  of  a 
street  surface  railway.  In  making  new  grants  the  City  should  insist  on  provisions 
by  which  it  may  avail  itself  of  that  desirable  feature  should  it  become  necessary  after 
operations  begin.     Traffic  conditions  are  changing  from  day  to  day  and  the  necessity 


10 

for  the  substitution  of  routes  will  undoubtedly  arise.    The  proposed  amendment  would 
to  some  extent  nullify  the  object  to  the  clause. 

6.  Section  2,  Subdivision  Twenty-eight,  is  modified  so  that  the  riKbt  of  for- 
feiture is  practically  eliminated.  Instead  thereof  the  Company  is  given  ninety  days 
to  cure  any  defect  specified  by  the  Board;  if  there  be  a  dispute  as  to  the  fact  of 
default  or  as  to  the  remedy  thereof,  the  courts  may  be  resorted  to,  and  if  not 
remedied  within  ninety  days  or  within  such  fiirlliir  time  as  may  be  allowed  by  the 
Board  or  by  the  Courts,  the  franchise  shall  be  deemed  to  be  forfeited.  The  word 
"reasonable"  with  respect  to  the  orders  of  the  lioard  when  acting  under  the  powers 
reserved  in  the  c<intract  has  been  inserted. 

The  proposal  of  the  Company  is  a  decided  departure  from  the  standard  forfeiture 
clause  which  has  been  insisted  upon  for  a  number  of  years. 

7.  Section  2,  Subdivision  Twenty-ninth,  has  not  been  accepted  by  the  Company. 
This  subdivision  provides  for  a  fine  for  inefficient  public  service  at  the  rates  fixed  in 
the  contract  and  for  failure  to  maintain  its  equipment  in  good  condition.  This  is 
another  amendment  which  indicates  the  Company  does  not  wish  to  abide  by  the  form 
of  contract  which  has  been  adopted  by  the  Committee.  No  substitute  whatever  has 
been  offered. 

8.  The  Company  asks  that  a  new  section  be  added  wherein  it  shall  be  provided 
that  nothing  in  the  contract  shall  be  deemed  to  prejudice  the  existing  franchises  of  the 
Company,  and  in  the  event  of  the  termination  of  the  franchise,  whether  by  default, 
forfeiture  or  otherwise,  the  Company's  existing  franchise  shall  be  deemed  unatTecteil 
by  the  fact  that  the  Company  has  become  a  party  to  this  contract. 

Second — Clauses  for  Which  Amendments  Are  Asked  by  Both  Companies. 

1.  Section  2,  Subdivision  Twenty-first,  provides  for  the  removal  of  snow  and  ice 
or  clearing  by  means  of  snow  plows  a  space  equivalent  to  sixteen  feet  in  widtli  if  the 
latter  method  is  consented  to  by  the  Commissioner  of  Street  Cleaning  and  the  Board. 

The  Viflh  Ai'eiitic  Coach  Company  has  stricken  out  all  of  this  provision  and  offers 
no    substitute. 

The  Sew  York  Motor  Bus  Com(iany  offers,  as  a  substitute,  to  open  a  passage  by 
means  of  snow  plows  or  brooms  sixteen  feet  in  width  over  all  or  any  of  the  routes 
which  are  not  occupied  by  a  street  surface  railway;  the  work  to  be  done  under  the 
direction  of  tlie  Commissioner  of  Street  Cleaning. 

The  Mfth  Avenue  Coach  Company  offers  nothing  whatever  toward  the  removal 
of  snow  and  ice,  while  the  New  York  Motor  Bus  Company  partially  meets  the  re- 
(|uiremenls  of  tlie  clause  as  adopted  by  the  Committee.  Thcxcforc,  the  offer  of 
the  New  York  Motor  Bus  Company  is  more  advantageous  to  the  City. 

2.  Section  2,  Subdivision  Thirty-first,  provides  for  a  security  deposit  of  $30,000, 
out  of  which  damages  or  penalties  are  to  be  deducted. 

The  Fifth  Avenue  Coach  Company  strikes  out  reference  to  the  removal  of  snow 
and  ice  as  one  of  the  obligations  under  the  contract  for  which  the  deposit  shall  be 
security.  This  is  done  for  the  reason  that,  as  above  explained,  the  Company  does  not 
accept  the  clause  providing  for  the  removal  of  snow  and  ice.  It  also  inserts  the  word 
"reasonable"  with  respect  to  orders  of  the  Board  issued  under  the  terms  of  the  con- 


11 

tract.  This  conforms  with  the  chanse  which  tlic  Company  proposes  in  Section  2, 
Twenty-eighth,  already  discussed.  It  also  amends  the  clause  so  that  failure  to  restore 
the  security  fund  to  its  full  amount  in  case  of  withdrawals  therefrom  shall,  instead 
of  coiistitutintj  a  forfeiture  as  proposed  by  the  Committee,  be  a  ground  for  default. 
This  amendment  is  made  in  accordance  with  the  policy  of  the  Company  to  eliminate 
all  provisions  providing  for  forfeiture. 

The  New  York  Motor  Bus  Company  strikes  out  the  reference  to  the  removal  of 
snow  and  ice  for  the  reason  that  that  Company  does  not  oflFer  to  remove  snow  and 
ice  in  Section  2,  Thirty-first,  but  offers,  as  a  compromise,  to  clear  a  space  by  snow 
plows  or  brooms.  The  Company  requests  that  it  be  given  ninety  days,  instead  of 
thirty,  to  make  the  $30,000  security  deposit,  but  does  not  submit  this  suggestion  as  an 
integral  part  of  its  proposal. 

The  Fifth  Avenue  Coach  Company  proposes,  therefore,  to  change  the  wording 
of  this  clause  which  has  become  standard,  while  the  New  York  Motor  Rus  Company 
agrees  to  accept  the  clause  in  its  present  form  except  the  one  change  in  reference  to 
snow  and  ice,  which  is  made  necessary  because  of  other  conditions  of  its  proposal. 

Third— Ci..\usEs    With    Respect   to    Which    the    Committee    Requested   the 
Applicant  Companies  to  Submit  Proposals. 
1.     Compensation. 

(a)  Initial  payments. 

The  Fifth  Avenue  Coach  Company  offers  $23,000. 

The  New  York  Motor  Bus  Company  oflfers  $30,000. 

Balance  in  favor  of  the  New  York  Motor  Bus  Company,  $5,000. 

(b)  Minimum  annual  sums. 

The  Fifth  Avenue  Coach  Company  oflfers  sums  varying  from  $35,000  per  annum 
to  $63,000  per  annum,  or  a  total  of  $730,000. 

The  New  York  Motor  Bus  Company  offers  varying  sums  from  $30,000  per  annum 
to  $60,000  per  annum,  or  a  total  of  $735,000.  The  New  York  Motor  Bus  Company, 
however,  asked  that  payments  begin  on  the  date  when  the  Company  commences  regu- 
lar operation  on  any  of  its  routes.  It  oflfers  to  operate  100  vehicles  within  six  months 
unless  prevented  by  legal  proceedings.  There  is  a  possibility,  therefore,  that  opera- 
tion may  not  begin  until  the  end  of  six  months,  in  which  case  the  minimum  payments 
for  the  first  year  offered  by  that  Company  would  be  reduced  one-half,  or  the  sum  of 
$15,000.    This  would  reduce  the  total  to  $720,000. 

Therefore,  the  total  oflfered  by  the  Fifth  .\venue  Company  exceeds  that  of  the 
New  York  Motor  Bus  Company  by  a  sum  which  may  vary  from  $15,000  to  $30,000. 
As  the  minimum  annual  payments  oflfered  by  both  Companies  are  substantial  sums, 
they  cannot  be  considered  as  an  all  important  factor  in  the  comparison  of  the  pro- 
posals. 

(c)  Percentages  of  gross  receipts. 

Each  Company  oflfers  five  per  cent,  of  the  gross  receipts.  The  Fifth  Avenue 
Coach  Company  proposes  to  operate  the  new  routes  as  extensions  to  its  existing 
routes  and  fixes  the  method  of  computing  the  percentage  of  gross  receipts.  For  the 
new  routes,  these  are  assumed  to  be  that  the  proportion  of  the  total  gross  receipts 


12 

from  both  the  existing  and  the  new  routes  which  the  mileage  of  the  new  routes  bears 
to  the  milcn^e  of  the  entire  system. 

The  offers  of  the  Companies  with  respect  to  initial  payment,  minimum  annual 
sums  and  percentages  of  gross  receipts  do  not  differ  materially.  The  length  of  the 
new  routes  of  the  Fifth  Avenue  Coach  Company  is  about  21  miles,  while  that  of  the 
routes  of  the  N'cw  York  Motor  Bus  Company  is  about  31  miles. 

The  offer  of  the  fifth  Avenue  Company  with  respect  to  compensation  is  affected 
by  three  other  amendments  proposed ;  namely  : 

1st. — The  amendment  of  the  non-e.xclusive  clause  whereby  the  City  would  be 

required  to  make  up  a  loss  of  revenue  resulting  from  the  granting  of  a  franchise 

to  another  company  upon  the  same  routes ; 

2nd. — The  amendment  of  the  clause  providing  for  the  substitution  of  routes 

upon  order  of  the  Board,  which  would  require  the  City  to  make  up  to  the  Company 

any  loss  of  revenue  due  to  such  change  of  route,  and 

3rd. — The  amendment  of  the  clause  providing  for  extensions  which  would  re- 
quire the  City  to  make  up  from  any  franchise  payments  any  loss  of  revenue  which 

might  result  from  such  extensions. 

Any  of  these  amendments  might  result  in  reducing  the  amount  of  compensa- 
tion which  the  City  would  receive. 

The  New  York  Motor  Bus  Company  has  also  proposed  an  amendment  whereby 
the  loss  due  to  the  operation  of  any  extension  ordered  by  the  Board  shall  be  made 
up  by  deductions,  equal  to  the  deficit,  from  the  compensation,  but  these  deductions 
are  so  limited  that  they  will  never  exceed  the  franchise  payments  due  the  City,  and 
there  is  an  added  proviso  that  in  the  event  that  the  deficit  equals  seventy-five  per  cent 
of  the  franchise  payments  then  the  extension  may  be  abandoned  without  further 
prejudice  to  the  City's  interest. 

The  Committee  recognized  that  the  clause  which  it  adopted  with  respect  to  future 
extensions  might  be  unsatisfactory  to  the  Companies,  and  therefore  they  were  given 
an  opportunity  to  submit  limitations  as  to  the  number  or  length  of  extensions  which 
may  be  ordered,  or  to  submit  a  substitute  provision  for  the  entire  clause.  It  will  be 
noted  that  both  Companies  adopted  the  same  scheme  of  limitation  with  the  exceptions 
already  noted.  The  Fifth  Avenue  Coach  Company,  however,  has  not  limited  the  plan 
to  require  the  City  to  make  up  deficits  from  operation  of  extensions  only,  but  has 
adopted  the  same  plan  with  respect  to  two  other  conditions  of  the  proposal. 

The  Fifth  Avenue  Coach  Company  asks  that  the  words 

"not  including,  however,  any  tax  for  the  privilege  of  operating  omnibuses  over 

the  franchise  routes" 
— be  added  to  the  tax  clause. 

The  New  York  Motor  Bus  Company  has  accepted  the  clause  in  the  standard  form. 

There  is  no  doubt  that  a  special  franchise  tax  would  be  construed  to  mean  a 
tax  for  the  privilege  of  operating,  and  the  amendment  proposed  by  the  Fifth  Avenue 
Coach  Company  would  permit  the  deductions  of  the  franchise  payments  from  the 
special  franchise  tax  pursuant  to  Section  48  of  the  Tax  Law.  The  tax  clause  thus 
amended  would  therefore  be  without  effect.    At  the  present  time  the  State  Tax  Com- 


13 

mission  does  not  assess  the  special  franchise  against  the  Fifth  Avenue  Coach  Com- 
pany, but  it  should  not  be  assumed  that  no  such  assessment  will  be  fixed  during  the 
term  of  the  contract.  Therefore,  it  is  important  that  the  tax  clause  lie  retained  in 
its  standard  form,  which  has  been  the  policy  of  the  Board. 

To  summarize  the  comparison  between  the  offers  of  compensation  by  the  two 
companies,  it  may  be  stated  that  the  initial  payments,  percentages  of  gioss  receipts  and 
the  guaranteed  annual  payments  do  not  materially  differ. 

The  possible  deductions  of  the  franchise  payments  which  would  result  from  the 
amendments  to  the  tax,  non-exclusive,  substitution  of  routes  and  e-xtension  clauses 
proposed  by  the  Fifth  Avenue  Coach  Company  make  the  offer  of  the  New  York 
Motor  Bus  Company  more  favorable. 

2.  Section  2.  Seventh.     Time  zvithin  uhich  to  commence  operation. 
The  Fifth  Avenue  Coach  Company  offers  to  begin  operation  of 
About  six  miles  of  route  within  one  month, 

A  little  more  than  si.x  additional  miles  of  route  in  four  months, 
About  four  and  one-half  additional  miles  in  six  months,  and 
The  Transverse  Roads  through  Central  Park,  consisting  of  about  four  and  one- 
half  miles,   within  one  month  after  completion  by  the  City  of   smooth   pave- 
ments therein. 
The  New  York  Motor  Bus   Company  offers  to  operate   100  vehicles  within  six 
months  after  the  signing  of  the  contract  and  to  add  a  sufficient  number  to  operate 
all  routes  in  twelve  months  after  signing  the  contract,  with  mandatory  instead  of 
discretionary  extension  of  said  time  if  operation  is  prevented  by  legal  proceedings, 
works  of  public  improvement,  or  other  causes  not  within  the  control  of  the  Company. 
Each  Company  offers  to  put  the  routes  in  operation  in  the  least  possible  time,  and 
since  both  Companies  offer  a  substantial  initial  payment  to  be  made  within  thirty 
days  after  the  signing  of  the  contract,  it  is  probably  safe  to  assume  that  every  effort 
will  be  made  by  the  Companies  to  fulfill  this  condition.     The  Companies  adopt  dif- 
ferent methods  in  their  offers  which  cannot  be  directly  compared.     In  view  of  the 
guarantee  afforded,  the  time  within  which  operation  would  become  complete  on  all 
parts  of  the  proposed  routes  is  not  of  supreme  importance. 

3.  Section  2,  Ninth.  Specification  mth  respect  to  vehicles.  Neither  Company  in 
its  specifications  of  dimensions  and  weights  of  vehicles  exceeds  the  maximum  fixed 
by  the  Committee.  The  Fifth  Avenue  Coach  Company  offers  a  vehicle  two  inches 
less  in  width  than  that  of  the  New  York  Motor  Bus  Company,  while  the  New  York 
Motor  Bus  Company  offers  a  vehicle  of  considerably  less  height  than  that  adopted  by 
the  Fifth  Avenue  Coach  Company.  The  offers  of  both  Companies  fall  below  the 
maximum  fixed  by  the  Committee.  Probably  the  two  most  important  dimensions 
from  the  traffic  standpoint  are  length  and  width,  and  in  the  latter  dimension  the 
Fifth  Avenue  Coach  Company's  offer  is  slightly  more  favorable  than  that  of  the 
New  York  Motor  Bus  Company.  The  height  is  also  important  for  the  safety  of 
passengers  when  operating  under  the  elevated  railroad  structures,  overhead  trolley 
wires  and  shade  trees.  In  this  respect  the  dimensions  offered  by  the  New  York 
Motor  Bus  Company  are  more  advantageous. 


14 

The  difference  between  the  two  offers  is,  however,  so  shght  that  a  comparison 
is  not  important. 

4.  Section  2,  Nineteenth.     Rale  of  Fare. 

Both  Companies  arc  in  error  in  so  drafting  the  rate  of  fare  clause  as  to  put  the 
City  in  a  position  of  absohitcly  fixing  a  rate  of  fare  rather  than  a  maximum. 

The  most  probable  interpretation  which  can  be  put  upon  the  clauses  as  submitted 
by  the  Companies  is  as  follows : 

The  Fifth  Avenue  Coach  Company  will  operate  all  the  routes  proposed  under  the 
franchise  in  conjunction  with  or  as  extensions  of  the  existing  routes  of  the  Com- 
pany. A  fare  of  ten  cents  will  be  charged  for  each  passenger,  including  free  transfer 
privileges  entitling  a  passenger  to  one  continuous  trip  in  the  same  general  direction. 
The  New  York  Motor  Bus  Company  will  operate  two  classes  of  routes  called 
by  the  Company  "regular  routes"  and  "special  routes."  The  rate  of  fare  on  the 
regular  routes  will  be  ten  cents  with  free  transfers  entitling  a  passenger  to  a  con- 
tinuous ride  in  the  same  general  direction  upon  cither  a  regular  or  special  route. 
The  rate  of  fare  on  the  special  routes  shall  be  five  cents  with  free  transfers  entitling 
a  passenger  to  a  continuous  ride  in  the  same  general  direction  upon  any  of  the 
special  routes'.  Transfers  will  also  be  issued  on  special  routes  for  an  additional  fare 
of  five  cents,  which  will  entitle  a  passenger  to  a  continuous  ride  in  the  same 
general  direction  upon  a  regular  route. 

The  offer  of  the  Fifth  Avenue  Coach  Company,  therefore,  is  an  extension  of  the 
existing  system  of  the  Company  on  a  ten-cent  fare  basis  with  the  new  feature  of  free 
transfers  added.  The  ofTer  of  the  New  York  Motor  Bus  Company  is  the  operation 
of  a  comprehensive  system  on  a  ten-cent  basis  with  the  addition  of  certain  five-cent 
routes  with  also  the  feature  of  free  transfers. 

A  transportation  system  operated  by  one  company,  thus  permitting  universal 
transfers  for  a  single  fare,  is  ordinarily  more  advantageous  from  the  public  stand- 
point than  the  operation  of  two  or  more  independent  systems  with  no  interchange  of 
transfers  between  the  separate  systems.  Whether  that  is  true  in  this  case  is  a  matter 
which  will  have  some  bearing  upon  the  relative  desirability  of  the  two  offers. 

The  Fifth  Avenue  Coach  Company  now  operates  about  19  miles  of  route.  Its 
proposal  would  add  about  21  miles  to  the  system,  making  a  total  of  about  40  miles. 
The  New  York  Motor  Bus  Company  proposes  to  operate  about  30  miles.  If  its  offer 
were  accepted  then  there  would  be  two  systems  in  operation  having  an  aggregate  of 
about  SO  miles  of  routes.  There  is  to  be  compared,  therefore,  the  serviceability  of 
two  systems  having  a  mileage  of  21  and  30,  respectively,  with  the  serviceability  of  a 
single  system  having  a  total  mileage  of  about  40. 

Your  Committee  has  given  the  matter  considerable  thought  and  has  come  to  the 
conclusion  that  there  would  not  be  an  appreciable  advantage  in  the  operation  of  the 
new  routes  as  extensions  to  the  existing  system  over  the  operation  of  the  new  routes 
as  a  separate  system. 

If  the  conclusion  just  stated  is  correct,  there  remains  only  the  direct  comparison 
of  the  rates  of  fare  offered  by  the  two  companies.  Since  both  companies  offer  a 
fare  of  ten  cents  with  free  transfers  upon  the  entire  system,  neither  has  the  advantage 
in  that  respect. 


15 

In  addition  to  the  ten-cent  fare,  the  New  York  Motor  Bus  Company  oflers  ten 
special  routes  upon  which  the  fare  is  only  five  cents.  These  special  routes  are.  in 
brief,  as  follows : 

A  connection  between  the  Gramercy  Park  and  Union  Square  districts  and  the 
Pennsylvania  Station  by  the  way  of  Madison  Avenue  and  other  streets. 

A  connection  between  the  Union  Square  and  Pennsylvania  Station  by  the  way 
of  14th  Street  and  Seventh  Avenue. 

A  connection  between  the  Pennsylvania  and  the  Grand  Central  Railroad  Stations. 

Three  cross-town  routes  connecting  the  East  and  West  Sides  by  the  way  of  the 
Transverse  Roads  through  Central  Park. 

Four  routes  in  and  north  of  12Sth  Street. 

The  introduction  of  five-cent  routes  which  will  enable  passengers  to  ride  by 
direct  route  between  the  East  and  West  Sides  through  Central  Park,  between  the 
Grand  Central  and  the  Pennsylvania  Railroad  Terminals  and  from  the  Upper  West 
Side  into  the  retail  district  of  Harlem  at  125th  Street  is  a  very  advantageous  feature 
to  those  districts.  These  services  are  not  provided  by  any  transportation  system  now 
existing. 

It  is  believed  that  in  this  respect  the  offer  of  the  New  York  Motor  Bus  Company 
is  decidedly  more  desirable  than  that  of  the  Fifth  Avenue  Coach  Company. 

5.     Section  2,  Twentieth.    Headway  of  vehicles  during  operation. 

The  most  probable  interpretation  of  the  offer  of  the  Fifth  Avenue  Coach  Com- 
pany is  that  it  will  operate  vehicles  at  intervals  of  not  more  than  fifteen  (15) 
minutes  between  7  a.  m.  and  midnight,  and  that  it  will  also  operate  on  a  fifteen 
minute  headway  between  midnight  and  7  a.  m.  if  reasonable  convenience  of  the  public 
requires  and  it  be  so  directed  by  resolution  of  the  Board. 

The  New  York  Motor  Bus  Company  offers  to  operate  vehicles  at  intervals  of  not 
more  than  fifteen  (15)  minutes  between  the  hours  of  7  a.  m.  and  midnight,  and  as 
much  oftener  as  reasonable  convenience  of  the  public  may  require,  or  as  may  be 
directed  by  resolution  of  the  Board,  and  to  operate  at  such  intervals  between  mid- 
night and  7  a.  ni.  as  reasonable  convenience  of  the  public  may  require  or  as  may 
be  directed  by  the  Board. 

The  maximum  headway  between  7  a.  m.  and  midnight  proposed  by  both  com- 
panies is  the  same,  though  the  Fifth  Avenue  Coach  Company  has  eliminated  the  pro- 
vision which  would  require  it  to  operate  as  much  oftener  than  fifteen  minutes  as  con- 
venience of  the  public  requires  or  as  directed  by  the  Board. 

With  respect  to  the  period  between  midnight  and  7  a.  m.  the  Fifth  Avenue  Coach 
Company  offers  to  operate  on  a  fifteen  minute  headway  only  if  reasonable  convenience 
of  the  public  requires,  and  if  it  be  so  ordered  by  the  Board.  It  does  not  (guarantee 
to  operate  on  a  less  headway  even  if  public  convenience  does  require  it.  The  New 
York  Motor  Bus  Company  offers  to  operate  on  any  headway  (maximum  not  fixed) 
during  those  hours  if  reasonable  convenience  of  the  public  requires  or  if  the  Board 
directs. 

Thus  the  New  York  Motor  Bus  Company  goes  much  further  in  guaranteeing 
service  in  accord  with  public  demands  than  does  the  Fifth  Avenue  Coach  Company. 


16 

6.  Section  2,  Twenty-tliird.  Company  to  cxlciid  routes  during  the  term  of  the 
contract  upon  direction  of  Board. 

The  Fifth  Avenue  Coach  Company's  proposal  is  as  follows: 

Amends  so  that  upon  notice  by  Board  to  Company  to  extend,  the  Company  may 
or  may  not  acquiesce.  If  it  acquiesces  it  shall  apply  for  franchise  and  accept  the 
same  for  a  term  co-terminous  with  the  original  contract  and  upon  the  same  terms  and 
conditions,  except  that  no  further  initial  or  minimum  payments  shall  be  required.  If 
the  Company  does  not  acquiesce  it  will  nevertheless  equip  and  operate  the  extension, 
but   upon   the   following  conditions : 

Separate  account  to  be  kept  of  the  operation  of  the  extension. 

Deduct  from  gross  receipts : 

1st — The  operating  expenses. 

2nd — Six  per  cent,  on  additional  equipment  required   for  extension. 

3rd — A   sum  sufficient  to  amortize  not  less  than  one-half  the  cost  of  such 

equipment  before  the  termination  of  the  extension  franchise. 

If  there  be  an  excess  of  such  receipts  over  such  deductions,  then  such  excess  shall 
be  divided  equally  with  the  City. 

If  there  be  a  deficit  after  such  deductions,  then  the  same  is  to  be  offset  against 
any  franchise  payments  or  collected  as  a  debt  due  from  the  City. 

Cross  receipts  of  extension  shall  be  fares  collected  thereon  plus  that  proportion 
of  other  operating  revenue  as  mileage  of  the  extension  bears  to  the  mileage  of  the 
general  system. 

Operatinq  expenses  shall  be  arrived  at  by  pro  rating  the  same  for  the  extension 
and  the  system  in  proportion  to  the  mileage  of  extension  to  mileage  of  general  sys- 
tem. 

The  New  York  Motor  Bus  Company's  proposal  is  as  follows : 

Extensions  may  be  ordered  by  Board  at  any  time  during  the  original  term  and 
the  first  seven  years  of  the  renewal  term. 

Provision  made  for  additions  as  well  as  extensions. 

Agrees  to  accept  the  new  franchise  which  will  contain  terms  and  conditions  sim- 
ilar to  those  of  the  original  contract  and  also  the  following  special  conditions : 

1st — Company  to  keep  accurate  accounts  of  gross  income  from  extension  or 

addition  and  adopt  such  means  to  keep  accurate  account  as  are  necessary  and 

approved  of  by  the  Board. 

2nd — Cost  of  operation  shall  be  deemed  to  equal: 

(a)  Actual  bus  miles  on  extension  or  addition  multiplied  by  average  cost  of 
operation  per  bus  mile  on  whole  system,  including  the  cost  of  amortization  of 
physical  property  on  whole  system. 

(b)  Also  6  per  cent,  per  annum  upon  a  sum  equal  to  $10,000  per  vehicle 
actually  required  to  carry  on  the  operation  of  the  extension  or  addition. 

3rd — If  cost  of  operation  of  extension  or  addition,  as  above,  exceeds  gross 
income,  the  difference  shall  be  deducted  from  franchise  payments  for  the  original 
franchise. 

4th — If  for  any  quarter  of  a.  fiscal  year  the  operating  costs  of  such  extension  or 
addition  exceeds  the  gross  income  by  an  amount   in  excess  of  75  per  cent,  of 


17 

the  franchise  payments  for  the  original  frr.nchise  for  that  period  then  the  Com- 
pany shall  have  the  right  to  declare  void  the  franchise  for  that  extension  or  ad- 
dition. 

It  will  be  noted  that  if  there  is  a  deficit  in  the  operation  of  extensions  ordered  by 
the  Board,  the  Fiflli  Avenue  Company  proposes  that  it  shall  be  deducted  from  any 
franchise  payment,  which  means  payments  for  the  existing  franchises  as  well  as  for 
the  proposed  extensions,  or  collect  the  same  as  a  debt  due  from  the  City.  This  might 
result  in  the  effect  of  modifying  the  provisions  which  govern  the  existing  operations, 
namely,  that  the  Company  must  pay  into  the  City  Treasury  five  per  cent,  of  its  gross 
receipts.  This  could  not  legally  be  done  in  the  form  proposed.  It  is  also  a  doubtful 
question  whether  the  City  could  lawfully  assume  by  the  terms  of  a  franchise  contract 
the  obligation  to  make  up  a  deficit,  beyond  the  amount  payable  to  the  City  under  the 
franchise. 

The  Fifth  .Avenue  Coach  Company  proposes  to  compute  the  operating  expenses 
of  an  extension  liy  applying  the  average  operating  expense  per  mile  of  the  entire 
system.  This  method  is  entirely  unfair  to  the  City.  In  all  probability  the  average 
operating  cost  per  mile  of  the  whole  system  would  exceed  that  of  the  extension  for 
the  reason  that  the  headway  on  the  extension  would  be  greater  than  on  many  of  the 
routes  of  the  system.  The  more  equitable  basis  upon  which  to  figure  the  operating 
expenses  would  be  to  apply  to  the  number  of  bus  miles  on  the  extension  the  average 
cost  per  bus  mile  of  the  system.  One  probable  result  of  the  application  of  the  method 
of  computing  the  operating  expenses  proposed  by  the  Coach  Company  is  that  no  profits 
whatever  would  result  from  the  extension.  Either  the  method  of  computing  the  oper- 
ating expenses  should  be  changed  or  else  the  gross  receipts  should  be  fixed  on  the 
basis  of  the  average  of  the  whole  system. 

The  New  York  Motor  Bus  Company  offers  to  compute  the  operating  expenses  on 
the  basis  of  the  average  cost  per  bus  mile  and  in  that  respect  its  offer  is  more  favor- 
able to  the  City. 

The  Fifth  Avenue  Coach  Company  proposes  as  a  deduction  from  the  income  six 
per  cent,  per  annum  on  additional  equipment  required  for  extensions,  while  the  New 
York  Motor  Bus  Company  proposes  to  deduct  six  per  cent,  per  annum  upon  $10,000 
per  vehicle  required  to  carry  on  the  operation  of  the  extension. 

The  fixed  amount  is  probably  more  advantageous  to  the  City  in  that  the  deduc- 
tion can  be  more  easily  calculated.  If  $10,000  per  vehicle  is  a  fair  amount  upon  which 
to  compute  the  six  per  cent.,  tlien  the  scheme  of  the  New  York  Motor  Bus  Company  is 
more  advantageous. 


18 


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19 

III  view  of  the  foregoing,  your  Committee  is  of  tlic  opinion  that  the  offer  of  the 
New  York  Motor  Bus  Company,  Inc.,  is  the  one  most  advantageous  to  the  City  and 
the  public,  and  that,  in  fact,  Proposal  No.  1  of  the  Fifth  Avenue  Coach  Company  is 
one  which  could  not  properly  be  accepted  by  the  City. 

After  the  Committee  reached  this  conclusion  it  next  directed  its  attention  to 
the  wording  of  the  clauses  and  changes  sulimitlcd  in  the  proposal  of  the  New  York 
Motor  Bus  Company.  It  was  believed  that  tlie  wording  was  in  some  cases  insuf- 
ficiently clear  for  the  terms  of  a  contract.  Tin's  was  true  particularly  in  respect  to 
tlic  rate  of  fare  and  extension  of  time  clauses.  The  Bureau  of  Franchises  was  accord- 
ingly directed  to  redraft  those  clau.<;es  in  such  a  way  to  avoid  as  far  as  possible  any 
misunderstanding  as  to  their  meaning  and  to  insert  therein  such  provisions  as  are 
necessary  to  protect  the  interests  of  the  City  in  carrying  out  the  offer  of  the  Com- 
pany. The  Committee  felt  also  that  tliis  Company's  offer  to  commence  making  the 
miiiiinum  aiimial  payments  on  the  date  wlien  operation  shall  begin  upon  any  of  the 
lines,  instead  of  on  the  date  when  the  contract  is  signed  by  the  Mayor,  was  not  in 
line  with  the  City's  former  policy.  The  same  was  also  true  with  reference  to  that 
portion  of  the  Company's  ofTcr  which  provided  for  mandatory  instead  of  discretionary 
extension  of  time  liy  the  Board  if  operation  is  prevented  by  legal  proceedings,  works 
of  public  improvement,  or  otlier  causes  not  within  the  control  of  the  Company. 
Consequently  the  Bureau  of  Franchises  was  directed  to  confer  with  representatives 
of  the  Company  with  a  view  to  making  those  changes  in  the  contract  which  would 
eliminate  the  two  objections  above  noted. 

The  Company  has  expressed  its  willingness  to  eliminate  the  mandatory  provision 
with  respect  to  the  extension  of  time  for  the  commencement  of  operation.  It  argues, 
however,  that  conditions  have  materially  changed  with  respect  to  the  deliveries  of 
material  since  its  proposal  was  made.  While  it  believes  it  can  place  100  vehicles  in 
operation  within  six  months,  it  feels  that  two  months'  additional  time  would  be  of 
great  benefit  and  would  place  the  Company  in  a  position  where  it  would  feel  better 
able  to  comply  with  the  terms  of  the  contract.  Consequently  the  Company  has  agreed 
to  commence  the  payments  to  the  City  upon  the  date  when  the  certificate  of  con- 
venience and  necessity  by  the  Public  Service  Commission  is  granted,  provided  it  is 
given  eight  months  instead  of  six  months  to  place  in  operation  100  vehicles. 

The  contract  herewith  presented  contains  the  amendments  agreed  to  by  the 
Company  and  a  redraft  of  the  rate  of  fare  and  extension  of  route  clauses. 

Some  of  the  changes  and  additions  to  routes  proposed  by  the  Xcw  York  Motor 
Bus  Company  have  been  accepted  by  your  Committee  as  follows : 

The  addition  of  a  loop  at  the  northerly  end  of  the  West  Side  line  at  193rd  Street; 
the  addition  of  a  two-block  extension  for  terminal  purposes  on  Park  Avenue,  between 
12Sth  and  127th  Streets;  the  addition  of  a  loop  in  the  vicinity  of  Morningside  Drive 
and  120th  Street ;  the  addition  of  a  loop  at  the  westerly  and  easterly  terminals  for 
the  crosstown  line  through  79th  Street;  the  addition  of  a  loop  in  the  vicinity  of 
Park  Avenue  at  the  easterly  terminal  of  the  Crosstown  Line  in  Transverse  Road 
No.  1  through  Central  Park;  the  substitution  of  46th  Street  between  Park  Avenue 
and   Broadway  for  48tli  Street  between  the   same  limits;  the   addition   of  31st  and 


20 

33r(l  Streets  between  Madison  Avenue  and  Seventh  Avcnnc ;  tlic  elimination  of  th« 
line  from  ll.fth  Street  to  Broadway  by  tlie  way  of  St.  Nicliolas  Avenue,  St.  Nicholas 
Place,  Edgecomb  Koad  and  167th  Street;  the  elimination  of  St.  Nicholas  Avenue 
from  148th  Street  to  152nd  Street;  the  elimination  of  Morningsidc  Drive  from  110th 
Street  to  116th  Street;  the  elimination  of  120th  Street  from  Amsterdam  Avenue  to 
Broadway  and  from  Claremont  Avenue  to  Riverside  Drive,  and  the  elimination  of 
79th  Street   from  West  End  Avenue  to  Riverside  Drive. 

W  illi  respect  to  the  other  changes  proposed,  your  Committee  feels  that  it  would 
be  unwise  to  alter  the  system  in  accordance  therewith.  The  Committee  feels  that 
while  it  is  desirable  to  introduce  a  crosstown  line  in  the  vicinity  of  34th  Street,  that 
street  should  not  be  used  for  that  purpose  on  account  of  the  congested  traffic  con- 
ditions. The  use  of  Broadway  south  of  39th  Street  v\oul(l  likewise  tend  to  add  to 
congestion  in  the  vicinity  of  Herald  Square.  Your  Committee  agrees  that  no  rights 
should  be  granted  on  those  thoroughfares  at  the  present  time. 

There  has  been  included,  though  not  asked  for  by  tlie  Company,  42nd  and  4Sth 
Streets  from  Park  Avenue  to  Vanderbilt  Avenue  and  Vanderbilt  Avenue  from  42nd 
Street  to  45th  Street.  The  right  to  use  those  thoroughfares  has  been  proposed  upon 
the  condition  that  the  Board  shall  have  the  right  at  all  times  to  fix  the  ratio  of  the 
number  of  vehicles  which  shall  be  operated  upon  Vanderbilt  Avenue  to  the  number 
whicli  shall  be  operated  upon  the  elevated  roadway  around  the  Grand  Central  Station 
or  upon  the  temporary  route  in  Lexington  Avenue.  The  same  recommendation  has 
been  made  with  resi)ect  to  the  operation  in  31st  Street  and  3,ird  Street. 

The  contract  containing   these   modifications  is   submitted   herewith. 

The  recommendations  of  your  Committee  arc: 

First. — That  the  proposal  of  the  Manhattan  Motor  Bus  Company  be  not  received. 

Second. — That  the  proposal  of  Messrs.   Brunncr  and  Gridley  be  rejected. 

Third. — That  both  proposals  of  the  Fifth  Avenue  Coach  Company  be  rejected. 

Fourth — That  the  New  York  Motor  Company  be  advised  to  file  an  amended 
petition  for  the  routes  contained  in  this  form  of  contract,  in  order  that  the  Board 
may  r.ct  thereon.  It  is  believed  that  that  Company  has  submitted  the  best  offer  and 
that  the  contract  as  now  presented,  which  embodies  this  ofTcr,  is  a  good  and  satis- 
factory one  for  the  City  to  accept. 

The  Company  has  stated  that  it  is  willing  to  accept  the  amendments  hereinbefore 
discussed.  The  President  of  the  Company  has,  as  a  guarantee  of  the  Company's  good 
faith,  placed  in  the  hands  of  the  Committee  a  certified  check  in  the  sum  of  sixty 
thousand  dollars  ($60,000)  drawn  to  the  order  of  the  Comptroller.  This  check  is 
presented  upon  the  condition  that  it  is  to  be  returned  forthwith  if  the  Board  fails 
to  grant  the  franchise  to  the  New  York  Motor  Bus  Company.  If,  on  the  other  hand, 
the  Board  grants  the  franchise  according  to  the  proposal  the  check  is  to  be  delivered 
to  the  Comptroller  of  tlie  City  with  instructions  that  in  the  event  the  Company  fails 
to  accept  the  franchise  the  money  is  to  remain  the  property  of  the  City,  but  if  the 


21 

franchise  is  accepted  by  the  Company  the  money  is  to  be  applied  by  the  Comptroller 
to  the   initial  payment  and   security  deposit  required  by  the   franchise,   which  sums 
amount  to  sixty  thousand  dollars   ($60,000). 
Respectfully  submitted, 

JOHN   PURROY  MITCHEL,  Mayor; 

GEORGE  McANENY,  President,  Board  of  Aldermen ; 

DOUGLAS  MATHEWSON,  President,  Borough  of  The  Bronx; 

Franchise  Committee. 


22 

Synopsis  of  Provisions  of  Contract. 

Section  1.     Grant;  descriptions  of  streets  in  which  right  is  granted. 

Section  2.    Conditions  of  grant. 

First — Term  of  grant:     15  years  with  privilege  of  10  years  renewal. 

Second — Compensation. 

Initial  payment $,?0,riOO  00 

Five  per  cent,  of  ktoss  rcifipls   with   minimum  aiimi;il   payments  as 
follows : 

I'irst  year   $.1(),(X)0  (K) 

Second  year  35,000  00 

Succccdinji;  flircc  years -lO/XX)  00  per  annum 

Succeeding  five  years 50,000  CO  per  annum 

Succeeding  five  years 60,000  00  per  annum 

Third — .Annual  charges  to  continue  throughout  wliole  term. 

I'Ourth — Kiglit  not  exclusive. 

Fifth — City  may  purchase  all  or  any  part  of  the  property  of  Company  upon  an 
agreed  value  or  value  to  be  determined  l)y  arbitration. 

Si.xth — Rights  not  to  be  assigned  williout  consent  of  Board. 

Seventh — Commencement  of  operation;  Company  to  place  in  operation  100  ve- 
liicks  iii>Hniicnths  and  a  sufficient  number  to  operate  all  lines  in  twelve  months. 

Eighth — Company  not  allowed  to  erect  structures  in  the  streets. 

Ninth — Limitations  of  weight,  dimensions,  etc.,  of  vehicles. 

Tenth — Information  to  be  painted  on  vehicles. 

EleveiUh — No  advertising  signs  to  be  permitted  on  tlic  outside  of  vehicles. 

Twelfth — Destinalion  of  vehicles  to  he  plainly  indicated. 

Tliirteenth — Number  of  passengers  to  l)c  carried  not  to  exceed  seating  capacity. 

I'ourteenth — Vehicles  to  be  heated. 

Fifteenth — Vehicles  to  be  lighted. 

Sixteenth — \'ehicles  must  be  submitted  for  approval  before  they  are  put  in  opera- 
tion. 

Seventeenth — Vehicles  to  be  maintained  in  good  and  safe  repair;  Company  to 
permit  inspection  of  vehicles  and  to  withdraw  vehicles  from  service  if  unfit  for 
public  use  and  to  remedy  defect  before  restoring  same  to  service. 

Eighteenth — Laws  and  ordinances  affecting  operation  to  lie  compliid  with. 

Ninetecntl) — Kate  of  fare,  b'are  to  be  ten  cents  between  all  points  willi  certain 
named  routes  upon  which  the  fare  .shall  be  five  cents. 

Twentieth — I'requency  of  service  and  discretion  of  Hoard  with  reference  to  num- 
ber of  vehicles  on  certain  streets. 

Twenty-first — Company  to  open,  by  means  of  snow  plows,  passage  sixteen  feet  in 
width  over  all  routes  not  occupied  by  street  railways. 

Twenty-second — Use  of  streets  other  than  those  described  in  the  contract. 

Twenty-third — Coinpany  to  operate,  pursuant  to  specified  conditions,  extensions 
or  additional  routes  upon  order  of  the  Board. 

Twenty-fourth — Board  has  right  to  change  routes  of  Company  within  fixed 
limits. 


23 

Twenty-fifth — Company  to  report  to  Board. 

Twenty-sixth — Company  to  keep  accurate  books  of  account. 

Twenty-seventh — Company  to  keep  accurate  books  of  data  with  respect  to  different 
service  and  different  classes  of  vehicles. 

Twenty-eighth — City  may  sue  for  forfeiture. 

Twenty-ninth — Damages  for  inefficient  public  service. 

Thirtieth — Company  to  assume  all  liability  to  persons  and  property. 

Thirty-first — Security  deposit. 

Thirty-second — Definition  of  words  "notice,"  "order"  and  "direction." 
Thirty-third — Definition  of  words  "streets"  or  "avenues." 

Thirty- fourth — If  powers  of  the  Boanl  or  other  authorities  are  transferred  to  any 
other  board  or  authority,  then  such  other  board  or  authority  to  act  in  place  of  Board 
or  such  other  authority. 

Section  3 — Nothing  in  the  contract  to  be  construed  as  limiting  power  of  Public 
Service  Commission. 

Section  4 — Company  promises,  covenants  and  agrees  to  conform  to  and  abide  by  al' 
the  terms  and  conditions. 

Proposed  Form  of  Motor  Bus  Franchise. 

This  contract,  made  and  executed  in  duplicate  this  day  of       " 

19    ,  by  and  between  The  City  of  New  York  (hereinafter  called  the  City),  party  of  the 
first  part,  by  the  Mayor  of  said  City,  acting  for  and  in  the  name  of  said  City,  under 
and  in  pursuance  of  the  authority  of  the  Board  of  Estimate  and  .Apportionment  of 
said  City  (hereinafter  called  the  Board),  and  the 
Company  (hereinafter  called  the  Company),  party  of  the  second  part,  Witnesseth  : 

In  consideration  of  the  mutual  covenants  and  agreements  herein  contained,  the 
parties  hereto  do  hereby  covenant  and  agree  as  follows: 

Section  1.  The  City  hereby  grants  to  the  Company,  subject  to  the  conditions  and 
provisions  hereinafter  set  forth,  the  right  and  privilege  to  maintain  and  operate  a 
stage  or  omnibus  route  for  public  use  in  the  Borough  of  'Manhattan,  in  The  City  of 
New  York,  upon  the  following  routes,  to  wit: 

Beginning  in  14th  Street  at  Union  Square;  thence  along  14th  Street  to  Irving 
Place;  thence  along  Irving  Place  to  20th  Street;  thence  east  along  20th  Street  to 
Graniercy  Park  East;  also  west  along  20th  Street  to  Gramercy  Park  West;  thence 
north  along  both  Gramercy  Park  East  and  Gramercy  Park  West  to  21st  Street;  thence 
cast  along  21st  Street  from  Gramercy  Park  West,  and  west  along  21st  Street  from 
Gramercy  Park  East  to  Lexington  Avenue;  thence  along  Lexington  Avenue  to  23d 
Street;  thence  along  23d  Street  to  Madison  Avenue;  thence  along  Madison  Avenue 
to  40th  Street;  thence  along  both  39th  and  40th  streets  from  Madison  Avenue  to 
Park  Avenue;  thence  along  Park  Avenue  to  42d  Street;  thence  along  42d  Street  to 
Vanderbilt  Avenue ;  thence  along  Vanderbilt  Avenue  to  45th  Street ;  thence  along  45th 
Street  to  Park  Avenue,  and  also  upon  a  viaduct  proposed  to  be  constructed  in  Park 
Avenue  for  the  purpose  of  connecting  the  roadway  of  Park  Avenue  at  about  40th 
Street  with  the  elevated  roadway  on  the  southerly  side  of  the  Grand  Central  Station ; 
thence  along  said  viaduct  to  said  elevated  roadway  on  the  southerly  side  of  the  Grand 


•1 


24 

Central  Station ;  thence  along  the  elevated  roadway  on  the  southerly  and  on  the 
westerly  sides  of  the  Grand  Central  Station  to  45th  Street ;  thence  along  45th  Street 
to  Park  Avenue ;  thence  along  Park  Avenue  to  96th  Street ;  provided  that  during  the 
period  prior  to  the  date  of  the  opening  to  traffic  of  said  viaduct  in  Park  Avenue 
from  about  40th  Street  to  the  elevated  roadway  on  the  southerly  side  of  the  Grand 
Central  Station,  the  route  of  the  operation  around  the  Grand  Central  Station  shall 
be  northerly  along  Park  Avenue  to  42d  Street ;  thence  along  42d  Street  to  Lexington 
Avenue ;  thence  along  Lexington  Avenue  to  46th  Street ;  thence  along  46th  Street 
to  Park  Avenue ;  thence  northerly  along  Park  Avenue ;  but  after  the  completion  of 
said  viaduct  the  operation  along  Park  Avenue  from  the  southerly  terminus  of  said 
proposed  viaduct  to  42d  Street,  along  42d  Street  from  Park  Avenue  to  Lexington 
Avenue,  along  Lexington  Avenue  from  42d  Street  to  46th  Street,  and  along  46th 
Street  from  Lexington  Avenue  to  Park  Avenue,  shall  cease,  and  the  operation  shall 
be  continued  upon  the  said  viaduct  and  said  elevated  roadways  on  the  southerly  and 
westerly  sides  of  the  Grand  Central  Station. 

Beginning  in  14th  Street  at  Union  Square ;  thence  along  14th  Street  to  7th  Avenue ; 
thence  along  7th  Avenue  to  Longacre  Square  and  Broadway ;  thence  along  Longacre 
Square  and  along  Broadway  to  Columbus  Circle.  (Provided  that  if  the  Board  sees 
fit  it  may  at  any  time  during  the  term  of  the  contract  order  the  Company  to  operate 
along  7th  Avenue  from  Broadway  to  57th  Street;  thence  along  57th  Street  to  Broad- 
way, instead  of  along  Broadway  from  7th  Avenue  to  57th  Street,  and  if  the  Board 
shall  so  order,  then  the  Company  shall  discontinue  the  operation  on  tliat  portion  of 
Broadway  between  48th  and  57th  streets)  ;  thence  along  Columbus  Circle  on  each 
side  thereof  to  Broadway;  thence  along  Broadway  to  its  intersection  with  72d  Street 
and  Amsterdam  Avenue  (provided  that  if  and  when  the  existing  street  railway 
tracks  in  Central  Park  West,  between  Columbus  Circle  and  72d  Street,  shall  be 
removed  to  a  position  at  or  near  the  center  of  the  roadway,  the  route  shall  then 
continue  along  Central  Park  West  from  Columbus  Circle  to  72d  Street;  thence  along 
72d  Street  to  its  intersection  with  Broadway  or  Amsterdam  Avenue,  and  the  company 
shall  then  discontinue  the  use  of  that  portion  of  Broadway  between  its  intersection 
with  Columbus  Circle  and  its  intersection  with  72d  Street  or  Amsterdam  Avenue)  ; 
thence  along  Amsterdam  Avenue  to  86th  Street;  thence  along  86th  Street  to  West 
End  Avenue;  thence  along  West  End  Avenue  to  Broadway;  thence  along  Broadway 
to  St.  Nicholas  Avenue;  thence  along  St.  Nicholas  Avenue  to  its  intersection  with 
Wadsworth  .\venue  or  193d  Street;  thence  along  Wadsworth  Avenue  or  193d  Street 
to  192d  Street;  thence  along  192d  Street  to  St.  Nicholas  Avenue. 

Beginning  at  the  intersection  of  Madison  Avenue  and  31st  Street;  thence  along 
31st  Street  to  8th  Avenue;  thence  along  8th  Avenue  to  33d  Street;  thence  along  33d 
Street  to  Madison  Avenue.  Beginning  at  the  intersection  of  Sixth  Avenue  and 
31st  Street,  thence  along  Sixth  Avenue  to  33rd  Street.  Beginning  at  the  intersection 
of  Broadway  and  39th  Street;  thence  along  Broadway  to  7th  Avenue,  or  Longacre 
Square. 

Beginning  at  the  intersection  of  7th  Avenue  with  39th  and  40th  streets;  thence 
along  both  39th  and  40th  streets  to  their  intersection  with  Park  Avenue;  said  route 


25 

in  39th  Street  to  lie  used  for  one-way  traffic  only,  and  said  route  in  40th  Street 
to  be  used  for  one  way  traffic  only.  Beginning  at  the  intersection  of  6th  Avenue 
and  39th  Street;  thence  along  6th  Avenue  to  40th  Street. 

Beginning  at  the  intersection  of  Broadway  with  46th  and  47th  streets ;  thence 
along  both  46th  and  47th  streets  to  their  intersections  with  Park  Avenue;  said  route 
in  46th  Street  to  be  used  for  one  way  traffic  only  and  said  route  in  47th  Street  to 
be  used  for  one  way  traffic  only. 

Beginning  in  6Sth  Street  at  its  intersection  with  Park  Avenue;  thence  along 
65th  Street  to  and  across  5th  Avenue  to  Transverse  Road  No.  1  through  Central 
Park ;  thence  along  said  Transverse  Road  to  Central  Park  West  at  66th  Street ;  thence 
along  66th  Street  to  Broadway  (provided  that  if  the  Company  shall  subsequently 
operate  along  Central  Park  West  and  72d  Street  from  Columbus  Circle  to  the  inter- 
section of  72d  Street  and  Broadway,  instead  of  along  Broadway  from  Columbus 
Circle  to  72d  Street,  as  herein  provided,  then  the  Company  shall  discontinue  the 
operation  along  that  portion  of  66th  Street  between  Central  Park  West  and  Broadway. 
Also  beginning  at  the  intersection  of  Park  Avenue  and  64th  Street ;  thence  along 
64th  Street  to  Madison  Avenue ;  thence  along  Madison  Avenue  to  65th  Street. 

Beginning  at  the  intersection  of  Avenue  A  and  79th  Street;  thence  along  Avenue 
A  to  80th  Street ;  thence  along  80th  Street  to  East  End  Avenue ;  thence  along 
East  End  Avenue  to  79th  Street ;  thence  along  79th  Street  to  and  across  5th  Avenue 
to  Transverse  Road  No.  2  through  Central  Park;  thence  along  said  Transverse  Road 
to  Central  Park  West,  at  81st  Street ;  thence  along  Central  Park  West  to  77th  Street ; 
thence  along  77th  Street  to  Columbus  Avenue ;  thence  along  Columbus  Avenue  to 
79th  Street;  thence  along  79th  Street  to  West  End  Avenue;  thence  along  West 
End  Avenue  to  80th  Street ;  thence  along  80th  Street  to  Broadway ;  thence  along 
Broadway  to  79th  Street. 

Beginning  in  96th  Street,  at  its  intersection  with  Park  Avenue ;  thence  along  96th 
Street  to  5th  Avenue;  thence  along  5th  Avenue  to  Transverse  Road  No.  4  through 
Central  Park  at  97th  Street;  thence  along  said  Transverse  Road  to  Central  Park 
West;  thence  along  Central  Park  West  to  96th  Street;  thence  along  96th  Street  to 
West  End  Avenue. 

Beginning  in  110th  Street  at  its  intersection  with  Broadway;  thence  along  110th 
Street  to  8th  .Avenue  and  around  the  Circle  at  the  intersection  of  8th  .Avenue  and 
110th  Street. 

Beginning  at  the  intersection  of  Morningside  Drive  and  119th  Street;  thence  along 
119th  Street  to  Amsterdam  .Avenue;  thence  along  Amsterdam  .Avenue  to  120th  Street; 
thence  along  120th  Street  to  Morningside  Drive ;  thence  along  Morningside  Drive 
to  116th  Street;  thence  along  116th  Street  to  Claremont  Avenue;  thence  along  Clare- 
mont  Avenue  to  120th  Street ;  thence  along  120th  Street  to  Broadway. 

Beginning  in  Manhattan  .Avenue  at  its  intersection  with  110th  Street;  thence  along 
Manhattan  Avenue  to  Morningside  Avenue  (Morningside  Park  East)  ;  thence  along 
Morningside  Avenue,  or  Morningside  Park  East,  to  Convent  Avenue :  thence  along 
Convent  Avenue  to  St.  Nicholas  .Avenue ;  thence  along  St.  Nicholas  Avenue  to  its 
intersection  with  Broadway. 


26 

BcKinning  in  Manhattan  Street  at  or  near  tlic  terminal  of  the  130th  Street  Ferry 
to  Fort  Lee;  thence  along  Manhattan  Street  to  125th  Street;  thence  along  12Sth 
Street  to  Park  Avenue;  thence  along  Park  Avenue  to  127th  Street. 

Beginning  in  ISSth  Street  at  its  intersection  with  Broadway;  thence  along  ISSth 
Street  and  along  the  viaduct  in  155th  Street  to  a  point  on  said  viaduct  over  tlic 
station  of  the  elevated  railroad  at  the  intersection  of  ISSth  Street  and  yth  Avenue. 

Beginning  in  Fort  Washington  Avenue  at  its  intersection  with  Broadway;  thence 
along  Fort  Washington  Avenue  to  ISlst  Street;  thence  along  181st  Street  to  St. 
Nicholas  .\vcnuc. 

Also  along  any  or  all  of  the  following  portions  of  streets  and  avenue  which 
may  be  necessary  for  the  Company  to  use  in  order  that  it  may  conform  with  traffic 
regulations : 

Union  Siiuare  West  and  Union  Siiuare  East  from  their  intersections  with  14th 
Street  to  their  intcr.sections  with  17th  Street. 

Fifteenth  and  16th  streets  from  their  intersections  with  Irving  Place  to  their 
intersections  with  Union  Sijuare  East- 

Seventeenth  Street  from  its  intersection  with  Irving  Place  to  its  intersection  with 

Broadway. 

Forty-first,  42d  and  ASlh  streets  from  their  intersections  with  Broadway  to  their 
intersections  with  7th  Avenue. 

Seventh  Avenue  from  Longacre  Square  to  48th  Street. 

Fifty-seventh  and  58th  streets  from  their  intersections  with  Broadway  to  tluir 
intersections  with  8th  .Xvcnuc  and  8lh  Avenue  from  its  intersection  with  57th  Street 
to  Columbus  Circle. 

One  Hundred  and  Sixty-seventh  Street  from  Broadway  to  St.  Nicholas  Avenue. 

.■\nd  to  cross  such  oilier  streets  and  avenues,  named  and  unnamed,  as  may  be 
encountered  in  said  routes. 

The  said  routes  hereby  authorized  are  shown  upon  a  map  entitled : 
(Here  insert  title  of  map.) 
and  signed  by  ,  President,  and 

Engineer,  copy  of  which  is  attached  hereto,  is  to  be  deemed  a  part  of  this  contract, 
is  to  be  construed  with  the  text  thereof,  and  is  to  be  substantially  followed,  provided 
that  temporary  deviations  therefrom  may  be  permitted  as  hereinafter  set  forth. 

Section  2.  The  grant  of  tliis  privilege  is  subject  to  the  following  conditions, 
which  shall  lie  complied  with  by  the  Company: 

pirst Tlic  said  riglit  to  maintain  or  operate  said  stage  or  omnibus  routes  shall 

be  held  and  enjoyed  by  the  Company  for  the  term  of  fifteen  (15)  years  from  the 
date  upon  which  this  contract  is  signed  by  the  Mayor,  with  the  privilege  of  renewal 
of  said  contract  for  the  further  period  of  ten  (10)  years  upon  a  fair  revaluation  of 
such  right  and  privilege.  Such  right  and  privilege  shall  be  valued  as  if  the  Company 
had  not  exercised  the  same  for  the  said  period  of  fifteen  (15)  years,  and  no  allowance 
shall  be  made  to  the  Company  in  such  valuation  by  reason  of  such  exercise. 

If  the  Company  shall  determine  to  exercise  its  privilege  of  renewal  it  shall 
make  application  to  the  Board,  or  any  authority  which  shall  be  authorized  by  law  to 
act  for  the  City  in  place  of  the  Board.  Such  application  shall  be  made  at  any  time 
not  earlier  than  two  (2)  years  and  not  later  than  one  (1)  year  before  the  expiration 


of  the  original  term  of  this  contract.  The  determination  of  the  revaluation  shall  be 
sufficient  if  agreed  to  in  writing  by  the  Company  and  the  Board,  but  in  no  case  shall 
the  annual  rate  of  compensation  to  the  City  be  fixed  at  a  less  amount  than  the  sum 
required  to  be  paid  during  the  last  year  prior  to  the  termination  of  the  original 
term  of  this  contract. 

If  the  Company  and  the  Board  shall  not  reach  such  agreement  on  or  before  the 
day  one  (1)  year  before  the  expiration  of  the  original  term  of  this  contract,  then 
the  annual  rate  of  compensation  for  such  succeeding  ten  (10)  years  shall  be  reasonable, 
and  either  the  City  (by  the  Board)  or  the  Company  shall  be  bound  upon  request  of 
the  other  to  enter  into  a  written  agreement  with  each  other  fixing  the  rate  of  such 
compensation  at  such  amount  as  shall  be  reasonable,  but  in  no  case  shall  the  annual 
rate  so  fixed  be  less  than  the  sum  required  to  be  paid  for  the  last  year  prior  to  the 
termination  of  the  original  term  of  this  contract,  and  if  the  parties  shall  not  forthwith 
agree  upon  what  is  reasonable,  then  the  parties  shall  enter  into  a  written  agreement 
fixing  such  annual  rate  and  at  such  amount  as  shall  be  determined  by  three  dis- 
interested persons  selected  in  the  following  manner: 

One  disinterested  person  shall  be  chosen  by  the  Board;  one  disinterested  person 
shall  be  chosen  by  the  Company;  these  two  shall  choose  a  third  disinterested  person, 
and  tlie  three  so  chosen  shall  act  as  appraisers  and  shall  make  the  revaluation  aforesaid. 
Such  appraisers  shall  be  chosen  at  least  six  (6)  months  prior  to  the  expiration  of  this 
original  contract,  and  their  report  shall  be  filed  with  the  Board  within  three  (3) 
months  after  they  are  chosen.  They  shall  act  as  appraisers  and  not  as  arbitrators. 
They  may  base  their  judgment  upon  their  own  experience  and  upon  such  information 
as  they  may  obtain  by  inquiries  and  investigations,  without  the  presence  of  either 
party.  They  shall  have  the  right  to  examine  any  of  the  books  of  the  Company  and 
its  officers  under  oath.  The  valuations  so  ascertained,  fixed  and  determined  shall  be 
conclusive  upon  both  parties,  but  no  annual  sum  shall,  in  any  event,  be  less  than  the 
sum  refjuired  to  be  paid  for  the  last  year  of  the  original  term  of  this  contract.  If  in 
any  case  the  annual  rate  shall  not  be  fixed  prior  to  the  termination  of  the  original 
term  of  this  contract,  then  the  Company  shall  pay  the  annual  rate  theretofore  prevailing 
until  the  new  rate  shall  be  determined,  and  shall  then  make  up  to  the  City  the  amount 
of  any  excess  of  the  annual  rate  then  determined  over  the  previous  annual  rate.  The 
compensation  and  expenses  of  the  said  appraisers  shall  be  borne  jointly  by  the  City 
and  the  Company,  each  paying  one-half  thereof. 

Second — The  Company  shall  pay  to  the  City  for  the  privilege  hereby  granted  the 
following  sums  of  money  : 

(a)  The  sum  of  thirty  thousand  dollars  ($30,(KX))  in  cash  within  thirty  (30)  days 
after  the  date  on  which  this  contract  is  signed  by  the  Mayor,  and  before  anything  is 
done  in  exercise  of  the  privilege  hereby  granted. 

(b)  During  the  first  term  of  five  (5)  years  an  annual  sum  which  shall  be  equal 
to  five  (5)  per  cent,  of  its  gross  annual  receipts,  but  which  sum  shall  not  be  less 
than  thirty  thousand  dollars  ($30,000)  during  the  first  year  of  this  contract,  thirty-five 
thousand  dollars  ($,^.\000)  during  the  second  year  of  this  contract  and  forty  thousand 
dollars  ($40,000)  per  annum  during  the  succeeding  three  (3)  years  of  this  contract. 

During  the  succeeding  term  of  five  (5)  years  an  annual  sum  which  shall  be  equal 


28 

to  five  (5)  pir  cent,  of  its  gross  annual  rccupts,  but  wliicli  sum  shall  not  be  less 
than  fifty  thousand  dollars  ($50,000). 

During  the  remaining  term  of  five  (5)  years  an  annual  sum  which  shall  be  equal 
to  five  (5)  per  cent,  of  its  gross  annual  receipts,  but  which  sum  shall  not  be  less 
than  sixty  thoueand  dollars  ($60,000). 

The  gross  annual  receipts  mentioned  almve  shall  l)c  the  gross  receipts  of  the 
Company  from  all  sources,  except  from  the  operation  of  extensions  and  additional 
routes  which  may  he  hereafter  authorized. 

The  annual  charges  shall  commence  from  the  date  upon  which  the  Company 
obtains  the  approval  of  this  contract  and  a  certificate  of  convenience  and  necessity 
from  the  Public  Service  Commission,  as  required  by  law.  The  Company  hereby 
agrees  to  file  this  application  with  the  Public  Service  Commission  fur  such  approval 
and  such  certificate  within  ten  (10)  days  from  the  date  of  this  contract. 

All  annual  charges  as  above  shall  be  paid  into  the  Treasury  of  the  City  on 
November  1  of  each  year  and  shall  be  for  the  amount  due  to  September  30  next 
preceding.  Provided  that  the  first  payment  shall  he  only  for  that  proportion  of  the 
annual  charge  fixed  as  the  time  between  the  date  upon  which  such  annual  charges 
commence,  as  determined  under  the  conditions  of  the  preceding  paragraph  and 
September  30  following  shall  bear  to  the  whole  of  one  year. 

.\ny  and  all  payments  to  be  made  by  the  term  of  this  contract  to  the  City  by 
the  Company  shall  not  be  considered  in  any  manner  in  the  nature"  of  a  tax,  but 
such  payments  shall  be  made  in  addition  to  any  and  all  taxes  of  whatsoever  kind  or 
description,  now  or  hereafter  required  to  lie  paid  by  any  ordinance  of  the  City,  or 
resolution  of  the  Board,  or  any  law  of  the  State  of  New  York. 

Third — The  annual  charges  or  payments  shall  continue  throughout  the  whole 
term  of  this  contract,  notwithstanding  any  clause  in  any  statute  or  in  the  charter 
of  any  other  company  providing  for  payment  for  similar  rights  or  franchises  at  a 
different  rate. 

Fourth — Nothing  in  this  contract  shall  be  deemed  to  affect  in  any  way  the  right 
of  the  City  to  grant  to  any  individual  or  other  corporation  a  similar  right  or  privilege 
upon  the  same  or  other  terms  and  conditions,  over  the  same  streets  and  avenues,  here- 
inbefore described. 

Fifth — At  the  termination  or  forfeiture  of  this  grant,  the  City,  at  the  election  of 
the  Board,  shall  have  the  right  to  purchase  all  or  any  part  of  the  property  of  the 
Company  used  for  the  purpose  of  the  operation  of  the  stage  or  omnibus  system 
hereby  authorized  at  a  sum  equal  to  a  fair  value  of  such  property,  exclusive  of  any 
value  which  such  property  may  have  by  reason  of  this  contract. 

If  the  Company  and  the  City  cannot  agree  upon  a  fair  value  of  such  property, 
then  the  value  thereof  shall  be  determined  and  fixed  by  arbitration  at  the  instance 
of  either  party  upon  notice  to  the  other  party  hereto,  in  the  following  manner : 

One  disinterested  person  shall  be  chosen  by  the  Company,  one  disinterested  person 
shall  be  chosen  by  the  Board,  and  the  two  so  chosen  shall  choose  a  third  disinterested 
person.  The  decision  under  oath  of  any  two  of  such  persons,  who  shall  be  so  selected, 
shall  be  final  and  conclusive. 


29 

If  cither  the  Company  or  the  City  fails  to  appoint  an  arbitrator  as  herein  provided, 
or  should  the  first  two  arbitrators  fail  to  agree  on  the  selection  of  the  third  arbitrator 
within  thirty  (30)  days  after  the  first  two  arbitrators  shall  be  chosen,  or  if  no  two 
arbitrators  so  selected  shall  agree  upon  the  value  of  such  property  within  sixty  (60) 
days  after  the  arbitrators  shall  be  so  selected,  then  such  value  may  be  fixed  by  a 
^  Q^       commissiongr  appointed  by  the  Supreme  Court  on  the  application  of  either  party. 

Sixth — The  rights  and  privileges  hereby  granted  shall  not  be  assigned,  either  in 
whole  or  in  part,  or  leased  or  sublet  in  any  manner,  nor  shall  title  thereto,  or  right, 
interest  or  property  therein,  pass  to  or  vest  in  any  other  person  or  corporation 
whatsoever,  either  by  the  act  of  the  Company,  or  by  operation  of  law,  whether  under 
the  provisions  of  the  statutes  relating  to  the  consolidation  or  merger  of  corporations 
or  otherwise,  without  the  consent  of  the  City,  acting  by  the  Board,  evidenced  by  an 
instrument  under  seal,  anything  herein  contained  to  the  contrary  thereof  in  any  wise 
notwithstanding,  and  the  granting,  giving  or  waiving  of  any  one  or  more  of  such 
consents  shall  not  render  unnecessary  any  subsequent  consent  or  consents;  and  no 
assignment,  lease  or  sub-lease  of  the  rights  or  privileges  hereby  granted,  or  of  any 
part  thereof,  or  of  any  of  the  routes  mentioned  herein,  or  of  any  part  thereof,  shall 
be  valid  or  effectual  for  any  purpose  unless  the  said  assignment,  lease  or  sub-lease 
shall  contain  a  covenant  on  the  part  of  the  assignee  or  lessee  that  the  same  is  subject 
to  all  the  conditions  of  this  contract;  and  that  the  assignee  or  lessee  assumes  and 
will  be  bound  by  all  of  said  conditions,  and  especially  said  conditions  as  to  payments, 
anything  in  any  statute  or  in  the  charter  of  such  assignee  or  lessee  to  the  contrary 
notwithstanding,  and  that  the  said  assignee  or  lessee  waives  any  more  favorable 
conditions  created  by  such  statute  or  its  charter,  and  that  it  will  not  claim  by  reason 
thereof  or  otherwise  exemption  from  liability  to  perform  each  and  all  of  the  conditions 
of  this  contract. 

Seventh — The  Company  shall  place  at  least  one  hundred  vehicles  in  regular  opera- 
tion within  eight  (8)  months  from  the  date  of  the  signing  of  this  contract  and  a 
sufficient  number  of  vehicles  to  operate  all  of  the  routes  herein  authorized  within 
twelve  (12)  months  from  the  date  upon  which  this  contract  is  signed  by  the  Mayor, 
provided  that  such  period  may  be  extended  by  the  Board  for  a  period  or  periods  not 
exceeding  in  the  aggregate  six  (6)  months;  and,  provided,  further,  that  when  the 
commencement  of  said  operation  shall  be  prevented  by  legal  proceedings  in  any  court 
or  by  works  of  public  improvement,  or  from  other  causes  not  within  the  control  of 
the  Company,  the  time  for  the  commencement  of  such  operation  may  be  extended  for 
the  period  of  such  prevention,  but  no  delay  shall  be  allowed  for  unless  the  court  pro- 
ceedings shall  be  diligently  prosecuted  by  the  Company,  and  provided  further  that  in 
no  case  shall  such  delay  be  deemed  to  begin  until  the  Company  shall  have  given 
written  notice  to  the  Board  of  any  such  court  proceedings  or  other  occasion  of  delay, 
and  deliver  to  the  Board  copies  of  any  injunction  or  other  orders,  and  the  papers 
upon  which  the  same  shall  have  been  granted,  and  unless  upon  the  request  of  the 
Board,  the  Company  shall,  in  writing,  consent  that  the  Board,  either  in  its  own 
name  as  a  party,  or  in  the  name  of  the  City  as  a  party,  may  intervene  in  any  such 
proceeding. 

Eighth — Nothing  herein  contained  shall  be  construed  as  permitting  the  grantee  to 


30 

erect  any  structures  whatever  upon  City  streets,  and  the  Company  shall  not  construct 
or  maintain  any  fixture  or  structure  in  the  street  unless  especially  authorized  by  reso- 
lution of  the  Board. 

Nintli— .Ml  vehicles  which  may  be  operated  pursuant  to  this  contract  sliall  com- 
ply with  the  following  general  requirements  : 

1.  They  shall  be  propelled  by  power  generated  or  contained  within  the  vehicle 
itself,  bi:t  no  power  shall  be  used  which  will  in  its  generation  or  use  produce  smoke 
or  noxious  odors  sufficient,  in  the  opinion  of  the  Board  or  its  authorized  representa- 
tives, to  constitute  a  nuisance. 

2.  The  maximum  weight,  includins  fuel,  water,  oil  or  any  other  material  or  any 
accessories  used  in  operation,  shall  not  exceed  ten  thousand  five  hundred  (10,500) 
pounds. 

3.  The  maximum  width  shall  not  exceed  seven   (7)    feet  six   (6)   inches. 

4.  The  maximum  height  over  all  shall  not  exceed  ten  (10)  feet  nine  (9)  inches. 

5.  The  maximum  height  of  the  floor  of  the  upper  deck  shall  not  exceed  eight  (8) 
feet. 

6.  The  maximum  length  shall  not  exceed  twenty-five  (25)  feet. 

7.  Tlicy  shall  be  designed  and  constructed  in  a  manner  which  will  permit  ease  and 
freedom  of  movement  under  all  conditions. 

8.  The  distribution  of  weight  on  axles,  length  of  wheel  base  and  other  features 
of  design  shall  be  such  as  to  avoid  skidding  as  far  as  possible  and  shall  be  such  as  to 
permit  easy  steering  and  control. 

9.  They  shall  be  fitted  with  brakes  capable  of  stopping  and  holding  the  same  under 
all  conditions. 

10.  All  parts  shall  be  so  constructed  that  no  undue  noise  or  vibration  shall  result 
from  operation. 

11.  They  shall  be  so  constructed  that  the  oil  or  grease  cannot  drop  on  the 
roadway. 

Tenth — No  stage  or  omnibus  shall  be  operated  pursuant  to  this  contract  unless 
there  shall  be  painted  thereon  in  letters  sufficiently  large  to  be  clearly  legible  at  a 
distance  of  seventy-five  feet : 

(a)  The  name  of  the  Company  owning  and  operating  such  vehicle. 

(b)  The  number  of  the  vehicle  which  is  assigned  to  it  upon  receiving  the  approval 
of  the  Board  or  its  authorized  representatives. 

(c)  The  number  of  adults  for  which  the  vehicle  has  seating  space. 

Eleventh — No  advertising  signs  shall  appear  on  the  outside  of  any  stage  or 
omnibus. 

Twelfth— The  destination  of  each  stage  or  omnibus  shall  be  plainly  indicated  on 
the  front  of  the  vehicle,  and  shall  lie  illuminated  at  night. 

Thirteenth— The  numlier  of  passengers  to  be  carried  in  any  vehicle  shall  at  no 
time  exceed  the  seating  capacity  of  the  vehicles. 

Fourteenth — The  inclosed  portion  of  all  stages  or  omnibuses  which  are  operated 
on  said  routes  shall  be  heated  during  the  cold  weather,  in  conformity  with  such  laws 
and  ordinances  as  are  now  in  force  affecting  surface  railway  cars  or  such  laws  and 


31 

ordinances  affecting  stages  or  omnibuses  as  may  hereafter,  during  the  term  of  this 
contract,  be  in  force,  or  as  may  be  required  by  resolution  of  the  Board. 

.Fifteenth— Tile  inclosed  portion  of  all  stages  or  omnibuses  operated  on  said 
routes  shall  be  well  lighted  and  as  may  be  required  by  resolution  of  the  Board. 

Sixteenth — Before  any  stage  or  omnibus  is  put  in  service  it  must  be  submitted  to 
the  Board  or  its  authorized  representatives  and  receive  the  approval  thereof.  If  any 
vehicle  which  may  be  so  submitted  for  approval  shall  not  conform  with  the  require- 
ments herein  the  Company  shall  not  operate  such  vehicle.  If  after  a  vehicle  shall 
have  been  so  approved,  defects  develop  which  in  the  opinion  of  the  Board  or  its 
authorized  representatives  render  it  unsuitable  for  public  service,  then  the  Board 
or  its  authorized  representatives  may  require  the  withdrawal  of  such  vehicle  from 
service. 

Upon  being  approved  by  the  Board  or  its  authorized  representatives,  each  vehicle 
shall  be  given  a  number  which  shall  not  be  changed  so  long  as  such  vehicle  shall 
be  operated  by  the  Company,  unless  and  until  the  Company  shall  notify  the  Board 
that  it  proposes  to  change  the  number  of  the  vehicle  and  of  the  new  number  which 
it  is  proposed  to  use. 

Seventeenth — All  vehicles  operated  pursuant  to  this  grant  shall  be  maintained  in 
good  and  safe  repair  and  in  a  manner  which  will  in  all  ways  render  the  vehicle  fit  for 
public  service.  The  Company  shall  permit  the  Board  or  its  authorized  representatives 
to  inspect  at  all  reasonable  times  any  or  all  the  vehicles  used  by  the  Company.  If 
upon  inspection  any  vehicle  shall  appear  in  the  judgment  of  said  Board  or  its 
authorized  representatives  to  be  unfit  for  public  service,  then  the  Company  shall, 
upon  notice,  immediately  withdraw  such  vehicle  from  service,  and  shall  remedy  the 
defect  and  notify  the  Board  or  its  authorized  representatives  that  the  defect  has  been 
remedied  before  such  vehicle  shall  be  restored  to  service. 

Eighteenth — .-Ml  laws  and  ordinances  affecting  the  operation  of  stages  or  omnibuses 
now  in  force  or  which  may  be  in  force  during  the  term  of  this  contract  shall  be 
complied  with  by  the  Company.  The  Company  shall  also  comply  with  and  enforce 
the  carrying  out  of  any  orders  or  regulations  which  may  be  issued  by  the  Board,  de- 
signed for  the  protection  of  persons,  of  property  or  of  the  comfort  and  health  of 
the  public. 

Nineteenth — The  rate  of  fare  for  any  passenger  shall  not  exceed  ten  (10)  cents, 
and  upon  the  payment  of  such  fare  a  passenger  shall  be  entitled  to  ride  as  directly 
as  possible  from  any  point  on  the  routes  hereby  authorized  to  any  other  point  on 
the  routes  hereby  authorized,  either  in  one  vehicle  or  by  means  of  one  or  more 
transfers  to  other  vehicles,  provided  that  for  a  single  fare  of  ten  (10)  cents  no  pas- 
senger shall  be  entitled  to  return  toward  the  point  at  which  the  ride  originated,  and 
the  Company  shall  accordingly  issue  transfers  upon  demand,  good  within  a  reasonable 
time,  at  the  intersection  or  meeting  of  any  two  of  the  Company's  operating  routes  at 
some  point  of  such  intersection  or  meeting  to  be  designated  by  the  Company. 

In  consideration  of  the  right  hereby  granted  the  Company  agrees  to  operate 
"special"  five-cent  lines  over  the  streets  hereinafter  described,  all  of  which  streets 
are  included  in  the  routes  hereby  authorized. 

The  rate  of   fare  for  any  passenger  upon  said   "special"  lines   shall   not  exceed 


32 

five  (5)  cents,  and  upon  the  payment  of  such  fare  a  passenger  shall  be  entitled  to 
ride  as  directly  as  possible  from  any  point  on  said  "special"  lines  herein  described 
to  any  other  point  connected  by  said  "special"  lines,  either  in  one  vehicle  or  by  means 
of  one  or  more  transfers  to  other  vehicles,  provided  that  for  a  single  fare  of  five 
(S)  cents  no  passenger  shall  be  entitled  to  return  toward  the  point  at  which  the  ride 
originated,  and  the  Company  shall  accordingly  issue  transfers  upon  demand,  good 
within  a  reasonable  time  at  the  intersection  or  meeting  of  any  two  of  the  said  "special" 
lines  at  some  point  of  sucli  intersection  or  meeting  to  be  designated  by  the  Company. 

The  streets  in  which  said  "special"  five-cent  lines  shall  be  operated  are  described 
as  follows : 

Broadway  from  14th  Street  to  17th  Street;  17th  Street  from  Broadway  to  Irving 
Place;  4th  Avenue  from  14th  Street  to  17th  Street;  16th  Street  from  4th  Avenue 
to  Irving  Place;  15th  Street  from  4th  Avenue  to  Irving  Place;  14th  Street  from 
Irving  Place  to  7th  Avenue;  7th  Avenue  from  14th  Street  to  33d;  33d  Street  irum 
8th  Avenue  to  Madison  Avenue;  8th  Avenue  from  31st  Street  to  33d  Street;  3Ist 
Street  from  8th  Avenue  to  Madison  Avenue ;  Irving  Place  from  14th  Street  to  20th 
Street;  all  streets  bounding  Gramcrcy  Park;  Lexington  Avenue  from  21st  Street  to 
23d  Street ;  23d  Street  from  Lexington  Avenue  to  Madison  Avenue ;  Madison  Avenue 
from  23d  Street  to  40th  Street;  40th  Street  from  Madison  Avenue  to  Park  Avenue; 
39th  Street  from  Madison  Avenue  to  Park  Avenue ;  Park  Avenue  from  39th  Street  to 
42d  Street ;  along  the  viaduct  proposed  to  be  constructed  in  Park  Avenue  for  the  pur- 
pose of  connecting  the  roadway  of  Park  Avenue  at  or  about  40th  Street  with  the  ele- 
vated roadway  on  the  southerly  side  of  the  Grand  Central  Station ;  the  elevated  road- 
way on  the  southerly  side  of  the  Grand  Central  Station  between  the  said  viaduct  and 
the  elevated  roadway  on  the  westerly  side  of  the  Grand  Central  Station ;  the  elevated 
roadway  on  the  westerly  side  of  the  Grand  Central  Station;  45th  Street  from  Van- 
derbilt  Avenue  to  Park  Avenue;  Park  Avenue  from  45fh  Street  to  46th  Street;  46th 
Street  from  Park  Avenue  to  Lexington  Avenue;  Lexington  Avenue  from  42d  Street 
to  46th  Street;  42d  Street  from  Lexington  Avenue  to  Vanderbilt  Avenue;  Vanderbilt 
Avenue  from  42d  Street  to  43th  Street. 

Sixty-sixth  Street  from  Broadway  to  Central  Park  West ;  Transverse  Road  No.  1 
through  Central  Park  from  Central  Park  West  to  5th  Avenue;  65th  Street  from  5th 
Avenue  to  Park  Avenue ;  Park  Avenue  from  65th  Street  to  64th  Street ;  64th  Street 
from  Park  Avenue  to  Madison  Avenue;  Madison  Avenue  from  64th  Street  to  OSth 
Street. 

Broadway  from  79th  Street  to  80th  Street;  80th  Street  from  Broadway  to  West 
End  Avenue;  West  End  Avenue  from  80th  Street  to  79th  Street;  79th  Street  from 
West  End  Avenue  to  Columbus  Avenue;  Columbus  .Avenue  from  79th  Street  to  77th 
Street;  77th  Street  from  Columbus  Avenue  to  Central  Park  West;  Central  Park 
West  from  77th  Street  to  Transverse  Road  No.  2  through  Central  Park;  Transverse 
Road  No.  2  through  Central  Park  from  Central  Park  West  to  Fifth  Avenue;  79th 
Street  from  Fifth  Avenue  to  East  End  Avenue;  East  End  Avenue  from  79th  Street 
to  80th  Street;  80th  Street  from  East  End  Avenue  to  Avenue  A;  Avenue  A  from 
80th  Street  to  79th  Street. 


33 

Ninety-sixth  Street  from  West  End  Avenue  to  Central  Park  West;  Central  Park 
West  from  96th  Street  to  Transverse  Road  No.  4  through  Central  Park;  Transverse 
Road  No-  4  through  Central  Park  from  Central  Park  West  to  Fifth  Avenue ;  Fifth 
Avenue  from  Transverse  Road  No.  4  through  Central  Park  to  96th  Street;  96th 
Street  from  Fifth  Avenue  to  Park  Avenue. 

Park  Avenue  from  127th  Street  to  125th  Street;  125th  Street  from  Park  Avenue 
to  Manhattan  Street;  Manhattan  Street  from  125th  Street  to  Fort  Lee  Ferry;  Broad- 
way from  Manhattan  Street  to  St.  Nicholas  Avenue ;  St.  Nicholas  Avenue  from  Broad- 
way to  193d  Street;  193d  Street  or  Wadsworth  Avenue  from  St.  Nicholas  Avenue  to 
192d  Street;  192d  Street  from  Wadsworth  Avenue  to  St.  Nicholas  Avenue;  Morning- 
side  Avenue  from  125th  Street  to  Convent  Avenue;  Convent  Avenue  from  Morning- 
side  Avenue  to  St.  Nicholas  Avenue ;  St.  Nicholas  Avenue  from  Convent  Avenue  to 
Broadway;  167th  Street  from  Broadway  to  St.  Nicholas  Avenue;  155th  Street  from 
Broadway  to  Eighth  Avenue;  Fort  Washington  Avenue  from  Broadway  to  181st 
Street;  181st  Street  from  Fort  Washington  Avenue  to  St.  Nicholas  Avenue- 

Twentieth — Stages  or  omnibuses  shall  be  run  on  said  routes  at  intervals  of  not 
more  than  fifteen  (15)  minutes  between  the  hours  of  7  A.  M.  and  12  o'clock  midnight, 
and  as  much  oftener  as  reasonable  convenience  of  the  public  may  require  or  as  may 
be  directed  by  resolution  of  the  Board,  and  stages  or  omnibuses  shall  be  operated 
on  such  routes  and  at  such  intervals  between  the  hours  of  12  o'clock  midnight  and 
7  A.  M.  as  reasonable  convenience  of  the  public  may  require,  or  as  may  be  directed 
by  resolution  of  the  Board. 

It  is  hereby  agreed  that  the  Board  shall  at  all  times  during  the  term  of  this 
contract  have  the  right  to  fix,  for  any  period,  the  maximum  number  of  vehicles 
which  shall  be  operated  in  31st  Street  and  33d  Street,  from  Madison  Avenue 
to  Eighth  Avenue,  and  to  fix,  for  any  period,  the  ratio  of  the  number  of  vehicles 
operated  on  Vanderbilt  Avenue  between  42d  Street  and  45th  Street  to  the  number  of 
vehicles  operated  over  the  elevated  roadway  on  the  southerly  and  westerly  sides 
of  the  Grand  Central  Station,  and  to  fix.  for  any  period,  the  ratio  of  the  number  of 
vehicles  operated  on  Vanderbilt  Avenue  between  42d  Street  and  45th  Street,  to  the 
number  of  vehicles  operated  over  the  temporary  route,  Lexington  Avenue  from  46th 
Street  to  42d  Street. 

Twenty-first — In  the  event  of  snowfall  the  Company  shall,  as  directed  by  the  Com- 
missioner of  Street  Cleaning,  open  by  means  of  snow  plows  or  brooms,  a  passage 
sixteen  feet  in  width  over  all  or  any  of  the  routes  herein  authorized  and  not  occupied 
by  a  street  railway. 

Twenty-second— It  is  understood  that  the  Company  shall  operate,  pursuant  to 
this  contract,  only  the  routes  herein  authorized,  but  should  vehicular  traffic  be  diverted 
from  any  portion  of  any  of  the  streets  or  avenues  upon  which  the  Company  is  herein 
authorized  to  operate  because  of  fires,  parades  or  because  of  any  other  event  which 
will  close  the  street  to  vehicular  traffic  temporarily,  then  the  Company  may  use  such 
other  streets,  or  avenues  as  are  necessary  to  continue  the  operation.  If,  however,  for 
any  reason  any  of  the  streets  and  avenues  in  which  the  operation  is  hereby  author- 
ized shall  be  closed  to  vehicular  traffic  for  a  longer  period  than  twenty-four  hours, 


34 

then  the  Company  shall  communicate  with  the  Board  or  its  authorized  representatives 
and  obtain  authority  for  the  operation  upon  other  streets  and  avenues  for  the  period 
during  which  said  street  or  avenue  may  be  closed. 

Twenty-third — If   in  the  opinion  of   the   Board  it  shall  at  any   time  during  the 
uriginal  term,  or  during  the  first  seven  (7)  years  of  the  renewal  term  of  this  contract, 
be  deemed  necessary  that  the  Company  operate  an  extension  or  extensions  to  any  of  the 
routes  herein  authorized  or  routes  in  addition  to  and  distinct  from  and  in  no  way  con- 
nected with  those  herein  authorized,  and  the  Board  shall  so  order  after  a  public  hearing, 
notification  of  which  shall  be  given  to  the  Company  at  least  ten  (10)  days  prior  to  the 
date  thereof,  then  the  Company  shall  within  thirty  (30)  days  after  the  date  of  such 
order,  apply  for  a  franchise  for  a  term  expiring  not  later  than  the  date  of  the  expiration 
of  this  contract,  and  shall  accept  a  franchise  or  right  to  operate  such  extension,  exten- 
sions or  additional  routes,  which  franchise  shall  contain  the  following  special  clauses: 
"(1)     The  Company  shall  keep  accurate  accounts  of  the  gross  receipts  from 
all  sources  acquired  from  the  operation  of  the  route  herein  aulhoriccd  and  of  the 
number  of  bus  miles  operated  thereon,  and  shall  take  such  means  as  are  necessary 
and  approved  by  the  Board  to  keep  such  accounts. 

"(2)     The  annual  cost  of  operation  of  the  route  herein  authorized  shall  be 
deemed  to  equal  the  sum  of  the  follounng  items: 

"(a)     The  number    of  bus  miles  actually  operated  thereon,  multiplied  by  the 
average  cost  of  operation  per  bus  mile  over  the  entire  system  of  the 
Company,  which  average  cost  of  operation  shall  include  a  sum  suffi- 
cient to  pay  for  the  depreciation  of  physical  property,  which  sum  shall 
in  no  ez'cnt  be  less  than    an  amount  sufficient  to  pay  for  three  (3) 
years'  depreciation  during  the  term  of  this  franchise. 
"(b)     Interest  at  the  rate  of  si.v  (6)  per  cent,  per  annum  upon  the  value  of 
the  physical  property  actually  required  to  carry  on  the  operation   of 
the  route  herein  authorized,  which  value,  unless  a  less  z'alue  is  agreed 
to  by  the  Company  and  the  City,  or  a  less  value  determined  by  arbitra- 
tion, shall  be  an  amount  equal  to  ten  thousarnd  dollars   ($10,000)  for 
each  additional  vehicle  for  the  operation  of  the  route  herein  author- 
ized.   The  number  of  additional  vehicles  necessary  for  said  operation 
on  the  route  herein  authorized  shall  be  deemed  to  be  equal  to  the  num- 
ber of  bus  miles  operated  thereon  per  annum,  divided  by  the  average 
number  of  bus  miles  per  annum  operated  by  each  of  the  vehicles  of 
the  Company  over  its  entire  system,  which  shall  in  no  case  be  less  than 
twenty  thousand  miles. 
"(3)     The  gross  receipts  as  hereein  used  shall  be  the  actual  receipts  to  the 
Cotnpany   resulting  from   the    operation  of    the   route    herein  authorized    from 
any    source    wluitsoever.      If    said    route     is    operated    in    conjunction    with 
any    other    route    or    routes    of    the    Company    not    described    in    this    frat\- 
chise,  then  the  gross  receipts  shall  be  deemed  to   be  one  and  one-third    (I'A) 
times  the  cash    fares  collected  on  said  route,  one  half  (■/$)   the  cash  fare  value 
of  the  transfers  collected  on    said  route  and  that  proportion  of  the  receipts  of  the 


35 

Company  from  advcrlisiiiy  privileges  as  the  number  of  bus  miles  per  annum 
operated  on  the  route  herein  authorized  bears  to  the  total  bus  miles  operated  per 
annum  by  the  Company  upon  all  the  routes  then  operated  u-ithin  the  City,  unless 
some  other  method  to  determine  the  gross  receipts  shall  be  agreed  to  by  the  Com- 
pany and  the  City. 

"(4)  //  during  any  year  ending  September  30  the  cost  of  operation  of  the 
route  herein  authorized  shall  exceed  the  gross  receipts  therefrom  for  that  year, 
then  the  amount  of  the  excess  of  cost  of  operation  over  such  gross  receipts 
shall  be  deducted  frmn  the  payments  to  the  City  for  that  year  required  by  the 
first  or  original  franchise  granted  to  the  Company. 

"(5)  //  during  any  year  the  total  cost  of  operation  of  all  the  routes  operated 
by  the  Company  under  franchises  applied  for  in  compliance  linth  orders  of  the 
Board  pursuant  to  section  2,  subdiiision  ticenty-third,  of  the  original  franchise  of 
the  Company,  exceeds  for  the  corresponding  year  the  aggregate  of  the  gross  re- 
ceipts therefrom  by  an  amount  in  excess  of  three  and  three-fourths  (3J4)  per 
cent,  of  the  gross  receipts  of  the  routes  of  the  Company  operated  pursuant  to 
said  original  franchise,  then  the  Company  shall  hare  the  right  to  discontinue  and 
abandon  one  or  more  of  such  routes  operated  in  compliance  with  orders  of  the 
Board  as  is  necessary  to  limit  the  loss  to  an  amount  not  exceeding  said  three  and 
three-fourths  (3f4)  per  cent,  of  said  gross  receipts.  The  routes  to  be  abandoned 
shall  be  selected  by  the  Board." 

All  other  terms  and  conditions  of  such  franchise  shall  be  the  same  as  contained 
in  this  contract,  unless  otherwise  mutually  agreed  to  by  the  Company  and  the  City,  with, 
however,  the   following  exceptions,  omissions,  changes  and  additions : 

1.  Section  2.  subdivision  second,  clause  (a)  shall  provide  for  the  payment  of  an 
amount  bearing  the  same  ratio  to  thirty  thousand  dollars  ($30,000)  as  the  length  of 
such  extension  or  additional  route  bears  to  the  length  of  the  streets  described  herein 
unless  a  greater  amount  is  agreed  to  by  the  Company. 

2.  Section  2,  subdivision  second,  clause  (b)  shall  provide  for  a  payment  of  five 
(5)  per  cent,  of  the  gross  receipts  for  such  extension  or  additional  route  during  the 
term  of  the  contract,  with  reasonable  minimum  annual  payments,  to  be  agreed  upon 
between  the  City  and  the  Company. 

3.  Section  2,  subdivision  seventh,  shall  contain  a  specified  period  within  which  to 
commence  operation,  which  period  shall  be  sufficient  to  enable  the  Company  to  reason- 
ably comply  therewith. 

4.  Section  2,  subdivision  nineteenth  shall  provide  for  a  maximum  rate  of  fare 
to  be  determined  by  the  Board,  but  which  shall  in  no  case,  without  the  consent  of  the 
Company,  be  fixed  at  an  amount  less  than  five  (5)  cents. 

5.  Section  2,  subdivision  twentieth  shall  provide  for  maximum  headway  of  vehi- 
cles to  be  determined  by  the  Board. 

6.  Section  2,  subdivision  thirty-first  shall  provide  for  the  deposit  as  security  of 
a  sum  which  may  be  mutually  agreed  upon  by  the  Ciiy  and  the  Company.  In  case,  how- 
ever, such  an  agreement  cannot  be  reached,  the  amount  of  the  security  deposit  shall 


36 

bear  the  same  ratio    to  tliirty  thousand  dollars  ($30,000)  as  the  length  of  the  extension 
or  additional  route  shall  bear  to  tlic  streets  herein  described. 

7.  Section  2,  subdivision  twenty-third  sliall  be  omitted. 

8.  Said  contract  shall  also  contain  the  following  clause : 

"//  any  dispute  shall  at  any  time  arise  bet~veen  the  parties  hereto  in  regard 
to  the  amount  or  amounts  due  or  to  be  credited  to  either  the  Cily  or  the  Conu- 
/iiiiiy  under  the  terms  of  this  contract,  or  if  the  City  at  any  time  questions  the 
cquily  of  the  sum  of  ten  thousand  dollars  ($10,000)  per  %-ehicle  as  the  amount  upon 
K'/iiV/i  interest  at  the  rate  of  six  (6)  per  cent,  per  annum  is  to  he  charged  as  a 
port  of  operatintj  cost,  as  herein  proiided  for,  then  such  amount  or  amounts  shall 
be  determined  by  arbitration  at  the  instance  of  either  parly  upon  notice  to  the 
other  party  hereto,  in  the  folloxving  manner: 

"One  disinterested  person  shall  be  chosen  by  the  Company,  one  disinterested 
person  shall  be  chosen  by  the  Board,  and  the  two  so  chosen  shall  choose  a  third 
disinterested  person.  The  decision  under  oath  of  any  two  of  such  persons  who 
shall  be  so  selected,  shall  be  final  and  conclusive. 

"If  either  the  Company  or  the  City  fails  to  appoint  an  arbitrator  as  herein  pro- 
7.<ided  uilhin  thirty  (30)  days  from  the  date  of  such  notice,  or  should  the  first 
two  arbitrators  fail  to  agree  on  the  selection  of  the  third  arbitrator  unthin  thirty 
(30)  days  after  the  first  two  arbitrators  shall  be  chosen,  or  if  no  two  arbitrators 
so  selected  shall  agree  upon  said  amount  or  amounts  within  sixty  (60)  days  after 
the  arbitrators  shall  be  so  selected,  then  such  amount  or  amounts  may  be  fixed 
by  a  commission  appointed  by  the  Supreme  Court  on  the  application  of  either, 
party." 

9.  Such  additional  provisions  as  may  be  required  by  reason  of  conditions  peculiar 
to  the  operation  of  such  extension  or  additional  route  and  wliich  may  be  agreed  upon 
between  the  City  and  the  Company. 

Nothing  contained  in  this  subdivision  shall  apply  to  any  extension  or  additional 
route  for  which  a  franchise  is  voluntarily  applied  for  by  the  Company 

Twenty-fourth — If,  in  the  opinion  of  the  Board,  it  shall  at  any  time  during  the 
term  of  this  contract  be  deemed  necessary  that  tlie  Company  operate  upon  streets 
or  avenues  other  than  those  in  which  the  Company  is  herein  authorized  to  operate,  in 
substitution  for  any  route  or  portion  of  a  route  herein  authorized  running  in  a 
general  northerly  and  southerly  direction,  and  not  greater  than  one  mile  in  length, 
or  in  substitution  for  any  route  herein  authorized  running  in  a  general  easterly  and 
westerly  direction,  and  the  Board  shall  so  order  after  a  public  hearing,  notification  of 
which  sliall  be  given  to  the  Company  at  least  ten  (10)  days  prior  to  the  date  thereof, 
then  the  Company  .shall  apply  for  a  franchise  or  right  to  operate  such  substituted 
route  or  routes  within  thirty  (30)  days  after  the  date  of  such  order  and  accept  a 
franchise  therefor  upon  the  same  terms  and  conditions  as  those  contained  herein 
for  a  term  expiring  not  later  than  the  date  of  the  expiration  of  this  contrast,  and 
upon  receiving  such  franchise  the  Company  shall  surrender  the  franchise  rights  over 
the  route  for  which  such  substitution  has  been  made. 

Twenty-fifth— The  Company  shall   submit  to  the   Board  a  report   not   later  than 


37 

November  1  of  each  year  for  the  year  ending  September  30  next  preceding,  and  at 
any  other  time,  upon  request  of  the  Board,  which  shall  state: 

1.  The  amount  of  stock  issued,  for  cash,  for  property. 

2.  The  amount  paid  in  as  by  last  report. 

3.  The  total  amount  of  capital  stock  paid  in. 

4.  The  funded  debt  by  last  report. 

5.  The  total  amount  of  funded  debt. 

6.  The  floating  doI)t  as  by  last  report. 

7.  The  total  amount  of  floating  debt. 

8.  The  total  amount  of  funded  and  floating  debt. 

9.  The  average  rate  per  annum  of  interest  on   funded   debt. 

10.  Statement  of  dividends  paid  during  the  year. 

11.  The  total  amount  expended   for  same. 

12.  The   names  of   the  directors   elected   at  the  last   meeting   of  the   corporation 

held  for  such  purpose. 

13.  Location,  value  and  amount  paid  for  real  estate  owned  by  the  Company  as  bj 

last  report. 

14.  Location,  value  and  amount  paid  for  real  estate  now  owned  by  the  Company. 

15.  Number  of  passengers  carried  during  the  year. 

16.  Number  of  bus  miles  operated  during  the  year. 

17.  Total  receipts  of  Company  for  each  class  of  business. 

18.  Amounts  paid  by  the  Company  for  damage  to  persons  or  property  on  account 

of  construction  and  operation. 

19.  Total  expenses  for  operation,  including  salaries,  and  such  other  information 

in  regard  to  the  business  of  the  Company  as  may  be  required  by  the  Board. 

Twenty-Sixth— The  Company  shall  at  all  times  keep  accurate  books  of  account 
of  the  gross  receipts  from  all  sources  within  the  limits  of  the  City,  and  shall,  on  or 
before  November  1  of  each  year,  make  a  verified  report  to  the  Comptroller  of  the 
City  of  the  business  done  by  the  Company,  for  the  year  ending  September  30  nexi 
preceding,  in  such  form  as  he  may  prescribe.  Such  report  shall  contain  a  statement 
of  such  gross  receipts,  the  total  miles  in  operation  within  the  limits  of  the  City  and 
the  miles  operated  under  this  contract,  and  such  other  information  as  the  Comptroller 
may  require.  The  Comptroller  shall  have  access  to  all  books  of  the  Company  for 
tlic  purpose  of  ascertaining  the  correctness  of  its  report,  and  may  examine  its 
officers  under  oath. 

Twenty-seventh— The  Company  shall  keep  accurate  books  of  the  performance  of 
different  types  of  vehicles  and  the  different  services  rendered  and  the  cost  thereof, 
and  shall  at  any  time  fiirmsh  the  Board,  or  its  authorized  representatives,  such  informa- 
tion with  respect  thereto  as  shall  be  requested. 

Twcnty-eiglilli— In  case  of  any  violation  or  breach  or  failure  to  comply  with  any 
of  the  provisions  herein  contained  or  with  any  orders  of  the  Board  or  its  authorized 
representatives,  acting  under  the  powers  herein  reserved,  the  franchise  or  consent 
herein  granted  may  he  forfeited,  at  the  option  of  the  Board  by  resolution  of  said 
Board,  without  proceedings  at  law  or  in  equity.  Provided,  however,  that  such  action 
by  the  Board  shall  not  be  taken  until  the  Board  shall  give  notice  to  the  Company 


38 

to  appear  before  it  on  a  certain  day  not  less  than  ten   (10)   clays  after  the  date  of 
sutli  nolitc.  to  sliow  cause  why  such  resolution  deilaring  the  contract  forfeited  should 
not  he  adopted.     In  case  the  Company  fails  to  appear,  action  may  he  taken  by  the 
'^ U/^^  Company  forthwith. 

0  Any  false  entry  in  the  hooks  of  the  Company  or  false  statement  in  the  reports  to 

the  Comptroller  as  to  a  material  fact,  knowingly  made  by  tlie  Company,  shall 
constitute  such  a  violation  or  breach  or  failure  to  comply  with  the  provisions  herein 
contained  as  to  warrant  the  forfeiture  of  the  franchise. 

Nothing  herein  contained  shall  affect  in  any  way  the  ri^ht  of  the  Company  to 
apply  to  a  court  of  competent  jurisdiction  for  review  of  any  action  of  the  Board 
forfeiting  the  franchise  or  consent  herein  granted. 

Twenty-nintli — If  the  Company  shall  fail  to  give  efficient  public  service  at  the 
rates  herein  lixed,  or  fail  to  maintain  its  c(iuipment  as  herein  provided  in  good 
condition  throughout  the  whole  term  of  tliis  contract,  the  Hoard  may  give  notice 
to  the  Company  specifying  any  default  on  the  part  of  the  Company,  and  requiring 
the  Company  to  remedy  the  same  within  a  reasonable  time;  and  upon  failure  of  the 
Company  to  remedy  such  default  within  a  reasonable  time,  the  Company  shall  for 
each  day  thereafter  (hiring  which  the  <Iefaidt  or  defect  remains,  pay  to  the  City 
the  sum  of  two  hundred  and  fifty  dollars  ($250),  as  fixed  or  liquidated  damages, 
or,  at  the  option  of  the  Hoard,  this  contract  may  be  forfeited  upon  ten  (10)  days' 
notice  to  the  Company,  as  hereinafter  provided. 

Thirtieth— The  Company  shall  assume  all  liability  for  damages  to  persons  or 
property  occasioned  by  reason  of  the  operation  of  the  stage  or  omnibus  routes 
authorized  by  this  contract,  and  it  is  a  condition  of  this  contract  that  the  City 
shall  assume  no  liability  whatsoever  to  either  persons  or  property  on  account  of  the 
same,  and  the  Company  hereby  agrees  to  repay  the  City  any  damage  which  the  City 
shall  be  compelled  to  pay  by  reason  of  any  acts  or  default  of  the  Company. 

Thirty-first— This  grant  is  upon  the  express  condition  that  the  Company,  within 
thirty  (30)  days  after  the  signing  of  this  contract  by  the  Mayor,  and  before  anything 
is  done  in  exercise  of  the  rights  conferred  hereby,  shall  deposit  with  the  Comptroller 
of  the  City  the  sum  of  thirty  thousand  dollars  ($,30,000),  either  in  money  or  securities, 
to  be  approved  by  him,  which  fund  shall  be  security  for  the  performance  by  the  Com- 
pany of  all  of  the  terms  and  conditions  of  this  contract  and  compliance  with  all  orders 
of  the  Board  acting  under  the  powers  herein  reserved,  especially  those  which  relate 
to  the  payment  of  the  annual  charges  for  the  privilege  hereby  granted,  the  rendering 
of  efficient  public  service  at  the  rates  herein  fixed,  the  opening  of  a  passage  sixteen 
feet  in  width  in  the  event  of  a  snowfall  and  the  maintenance  of  vehicles  in  good  con- 
dition throughout  the  whole  term  of  this  contract;  and  in  case  of  default  in  the  per- 
formance by  the  Company  of  such  terms  and  conditions  or  compliance  with  such 
orders  or  either  or  any  of  them,  the  City  shall  have  the  right  to  cause  the  work  to 
be  done  and  the  materials  to  be  furnished  for  the  performance  thereof  after  due 
notice,  and  shall  collect  the  reasonable  costs  thereof  from  the  said  fund  without  legal 
proceedings;  or  after  default  in  the  payment  of  the  annual  charges  shall  collect 
the  same,  with  interest,  from  the  said  fund  after  ten  (10)  days'  notice  to  the  Com- 
pany; or  in  case  of  failure  to  observe  the  said  terms  and  conditions  of  this  contract 


39 

and  orders  of  the  Board  acting  hereunder,  relating  to  the  headway,  repair,  maintenance 
or  withdrawal  from  service  of  vehicles,  the  Company  shall  pay  a  sum  of  fifty  dollars 
($50)  per  day  for  each  day  of  violation,  and  the  further  sum  of  ten  dollars  ($10) 
per  day  for  each  vehicle  that  shall  not  be  properly  heated,  lighted  or  withdrawn  in 
case  of  the  violation  of  the  provisions  relating  to  those  matters,  as  fixed  or  liquidated 
damages,  all  of  which  sums  may  be  deducted   from  said   fund. 

The  procedure  for  the  imposition  and  collection  of  the  sums  as  fixed  or  liquidated 
damages  in  this  contract  shall  be  as  follows : 

The  Board,  on  complaint  made,  shall  give  notice  to  the  Company,  directing  its 
President  or  other  officer  to  appear  before  the  Board  on  a  certain  day  not  less  than 
ten  (10)  days  after  the  date  of  such  notice,  to  show  cause  why  the  Company  should 
not  pay  such  liquidated  damages,  in  accordance  with  the  foregoing  provisions.  If 
the  Company  fails  to  make  an  appearance,  or  after  a  hearing  appears  in  the  judgment 
of  the  Board  to  be  in  fault,  said  Board  shall  forthwith  impose  the  prescribed  damages, 
or  where  the  amount  of  such  damages  is  not  prescribed  herein,  such  amount  as  appears 
to  the  Board  to  be  just,  and  without  legal  procedure  direct  the  Comptroller  to 
withdraw  the  amount  of  such  damages  from  the  security  fund  deposited  with  him. 
In  case  of  any  drafts  made  upon  the  security  fund,  the  Company  shall,  upon  ten 
(10)  days'  notice,  pay  to  the  City  a  sum  sufficient  to  restore  said  security  fund  to 
the  original  amount  of  thirty  thousand  dollars  ($30,000),  and  in  default  thereof 
this  contract  shall  be  cancelled  and  annulled  at  the  option  of  the  Board,  acting  in 
behalf  of  the  City.  No  action  or  proceeding  or  right  under  the  provisions  of  this 
contract  shall  affect  any  other  legal  rights,  remedies  or  causes  of  action  belonging  to 
the  City. 

These  provisions  for  the  recovery  of  such  damages  are  in  addition  to  the  right 
to  forfeit  the  franchise  conferred  by  Section  2,  Subdivision  Twenty-eighth  of  this 
contract. 

Thirtj'-second — The  words  "notice,"  "order"  or  "direction,"  wherever  used  in 
this  contract,  shall  be  deemed  to  mean  a  written  notice,  order  or  direction.  Every 
such  notice,  order  or  direction  to  be  served  upon  the  Company  shall  be  delivered 
at  such  office  in  the  City  as  shall  have  been  designated  by  the  Company,  or  if  no  such 
office  shall  have  been  designated,  or  if  such  designation  shall  have  for  any  reason 
become  inoperative,  shall  be  mailed  in  the  City,  postage  prepaid,  addressed  to  the 
Company  at  the  City.  Delivery  or  mailing  of  such  notice,  order  or  direction  as  and 
when  aliove  provided  shall  be  equivalent  to  direct  personal  notice,  order  or  direction, 
and  shall  be  deemed  to  have  been  given  at  the  time  of  delivery  or  mailing. 

Thirty-third — Tlie  words  "streets  or  avenues"  and  "streets  and  avenues,"  wherever 
used  in  this  contract,  shall  be  deemed  to  mean  "streets,  avenues,  highways,  parkways, 
driveways,  concourses,  boulevards,  bridges,  viaducts,  tunnels,  public  places  or  any 
other  property  to  which  the  City  has  title"  encountered  in  the  routes  hereinabove 
described  and  upon  or  in  which  authority  is  hereby  given  to  the  Company  to  operate 
stages  or  omnibuses. 

Thirty-fourth— If  at  any  time  the  powers  of  the  Board  or  any  other  of  the 
authorities   herein   mentioned   or   intended   to   be   mentioned     shall   be   transferred   by 


40 

law  to  any  other  board,  authority,  officer  or  officers,  then  and  in  such  case  such 
other  board,  authority,  officer  or  officers  shall  have  all  the  powers,  rights  and  duties 
herein  reserved  to  or  prescribed  for  the  Board  or  other  autliorities,  officer  or  officers. 
Section  3.  Nothing  in  this  contract  shall  be  construed  as  in  any  way  limiting 
the  present  or  future  jurisdiction  of  the  Public  Service  Commission  under  the  Laws 

of  the  State  of  New  York. 

Section  4.  The  Company  promises,  covenants  and  agrees  on  its  part  and  behalf 
to  conform  to  and  abide  by  and  perform  all  the  terms,  conditions  and  requirements 
in  this  contract  fixed  and  contained. 

In  witness  whereof,  the  party  of  the  first  part,  by  its  Mayor,  thereunto  duly  author- 
ized by  the  Board  of  Estimate  and  Apportionment  of  said  City,  has  caused  the 
corporate  name  of  said  City  to  be  hereunto  signed  and  the  corporate  seal  of  said 
City  to  be  hereunto  affixed ;  and  the  party  of  the  second  part,  by  its  officers,  thereunto 
duly  authorized,  has  caused  its  corporate  name  to  be  hereunto  signed  and  its  corporate 
seal  to  be  hereunto  affixed,  the  day  and  year  first  above  written. 

THE  CITY  OF  NEW  YORK,  By  Mayor. 

(Corporate  Seal.) 

Attest :    City  Clerk. 

,  (Here  insert  name  of  Company.)   by 

President. 
(Seal.) 

Attest :    Secretary. 

(Here  add  acknowledgments.) 


41 

Appendix  A. 
Form  of  Letter  Sent  to  the  Applicant  Motor  Bus  Companies  by  the  Franchise  Com- 
mittee. 
Board  of  Estimate  and  Apportionment, 
Committee  on  Franchises, 

New  York,  May  4,  1915. 

Dear  Sir — There  are  before  the  Board  of  Estimate  and  Apportionment  applica- 
tions from  four  different  companies  for  the  right  to  maintain  and  operate  stage  or 
omnibus  lines  for  the  transportation  of  passengers  in  the  Borough  of  Manhattan. 
These  applications  Iiave  been  referred  to  the  Franchise  Committee.  The  routes  ap- 
plied for  by  the  several  companies  extend  into  almost  every  portion  of  the  Borough 
of  Manhattan.  Many  of  the  routes  of  the  different  applicants  are  identical,  and  some 
are  coincident  with  the  routes  of  street  surface  railways.  The  Committee  has  felt 
that  it  may  be  desirable  that  the  City  should  permit  the  operation  of  further  stage 
or  omnibus  routes  provided  an  agreement  can  be  reached  with  the  operating  com- 
pany upon  terms  satisfactory  to  the  City. 

The  questions  which  the  Committee  has  had  before  it,  therefore,  are :  Upon 
what  routes  should  the  right  to  operate  such  vehicles  be  granted  and  upon  what 
terms  and  conditions  should  the  grant  be  made? 

With  respect  to  routes,  the  Committee  does  not  feel  that  all  those  applied  for 
should  be  operated,  at  least  in  the  beginning,  but  that  rather  the  field  for  the  motor 
bus  at  the  present  time  is  to  supply  facihties  for  transportation  which  are  not  now 
furnished  by  the  street  railway  companies,  or,  if  a  duplication  of  service  is  permitted, 
it  should  be  along  routes  which  will  present  as  little  direct  competition  as  possible 
with  street  surface  railways.  With  this  in  mind,  the  Bureau  of  Franchises  was  in- 
structed to  lay  out  a  comprehensive  system  of  routes  which  would  serve  as  a  basis 
for  operation,  either  by  the  Fifth  Avenue  Coach  Company  as  extensions  to  its  exist- 
ing system  or  by  an  independent  company  as  a  complete  system  in  itself.  The  Bureau 
was  also  instructed  to  draft  a  form  of  franchise  for  the  routes  proposed.  Such  a 
comprehensive  system  was  so  laid  out  and  form  of  franchise  contract  prepared  by 
the  Bureau  of  Franchises.  The  Committee  subsequent  to  receiving  this  data  held 
duly  advertised  public  hearings  on  December  18,  29  and  31,  1914,  at  which  a  great 
many  citizens  appeared,  as  well  as  representatives  of  the  applicant  companies  and 
of  the  several  railway  companies  operating  within  the  Borough  of  Manhattan.  In 
addition,  many  communications  have  been  received  from  residents  or  property  owners 
either  in  favor  of  or  against  the  routes  as  proposed.  Memoranda  have  been  pre- 
pared by  three  of  the  four  applicant  companies  and  one  by  a  railway  company. 

Subsequent  to  the  hearings  in  December,  the  Franchise  Committee  carefully  con- 
sidered the  proposed  routes  and  the  form  of  contract.  In  view  of  the  suggestions 
and  criticisms  presented  at  the  hearings,  many  changes  were  made  in  both  the  routes 
and  the  contract. 

A  further  hearing  was  given  on  April  27,  1915,  upon  the  amended  form  of  con- 
tract and  the  amended  routes.  At  that  hearing  there  seemed  to  be  a  desire  on  the 
part  of  many  that  the  Broadway  route  should  extend  southerly  from  the  Longacre 


42 

Square  district  to  Herald  Square,  in  order  to  accommodate  passcn^•crs  desiring  to 
reach  the  hotels  and  retail  stores  in  the  Herald  Square  district.  This  portion  of 
the  route  on  Broadway  was  eliminated  liy  the  Committee  after  the  hearings  in  De- 
cemhcr.  ohjcction  having  heen  presented  at  that  time  to  the  use  of  liroadway  south 
of  Longacre  Square  on  account  of  the  existing  traffic  congestion.  The  Committee, 
however,  still  has  an  open  mind  with  respect  to  the  advisability  of  the  use  of  Broad- 
way between  Longacre  Square  and  Herald  Square.  Should  such  a  route  extend 
southerly  on  Broadway  to  Herald  Square,  it  probably  should  continue  westerly  along 
34th  Street,  connecting  with  tlic  Seventh  .\venue  route. 

The  revised  form  of  contract  is  submitted  herewith,  together  with  a  map  show- 
ing the  routes  as  modified  by  the  Committee. 

To  aid  in  the  selection  of  the  company  to  which  the  grant  mny  be  made,  it  ha< 
been  deemed  advisable  to  request  each  of  the  applicant  companies  to  present  its 
proposition  for  the  operation  of  routes  so  modified  by  the  Committee.  You  arc, 
therefore,  requested  to  submit  to  the  Committee  your  proposition,  based  upon  the 
draft  form  of  franchise  contract  and  the  routes  as  shown  upon  the  map  transmitted 
herewith.  It  is  the  intention  of  the  Committee  that  the  company  to  which  the  fran- 
chise may  be  granted  shall  operate  substantially  all  of  such  routes.  You  may,  how- 
ever, in  accordance  with  the  announcement  of  the  Chairman  of  the  Franchise  Com- 
mittee at  tile  close  of  the  hearing  on  .\pril  11,  suggest  clauses  which  you  desire  sub- 
stituted for  those  contained  in  the  form  of  contract  transmitted  herewith,  and  make 
such  mi;  or  changes  in  the  system  of  routes  as  you  deem  necessary,  giving  in  each 
case  your  reasons  for  the  substitution  of  clauses  and  for  the  minor  changes  of  route. 
If  new  clauses  are  substituted  and  changes  in  routes  are  made  by  you,  then  your 
proposition  should  be  for  the  operation  of  the  routes  so  changed  and  under  the  pro- 
vision of  the  contract  containing  clauses  so  substituted. 

llie  draft  form  of  contract  for  the  franchise  leaves  blank  the  different  items 
and  clauses  to  be  supplied  by  each  of  the  applicants.     They  are  as  follows : 

First— 

(a)  Maximum  initial  amount  which  you  are  willing  to  pay  for  the  franchise. 
franehiyc. 

(b)  Maximum  percentage  of  gross  receipts  which  you  are  willing  to  pay,  with 

guaranteed  minimum  annual  payments — 

1.  During  the  first  term  of  five  years. 

2.  During  the  succeeding  term  of  five  years. 

3.  During  the  remaining  term  of  five  years. 

Second — Tlic  minimum  period  or  periods  within  which  you  are  willing  to  begin 
operation. 

Third — The  minimum  wciiilit  and  dimensions  of  vehicle  to  be  operated  under 
the  franchise.  The  maximum  weight  and  dimensions  which  will  be  entertained  by 
the  Committee  are  indicated  in  the  contract. 

Fourth — The  maximum  rate  or  rates  of  fare  which  you  propose  to  charge. 

Fifth — Tlic  minimum  headway  which  you  are  willing  to  agree  to  operate  during 
different  periods  of  the  day  and  night. 


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BOARD  OF  ESTIMATE  AND  APPORTIONMENT 
BUREAU  OF  FRANCHISES 


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FRANCHISE  COMMITTEE 

RECOMMENDING    IHE  GRANTING  OF  *  fNANCHiSC 

FOR  ADDITIONAL 

MOTOR  BUS  ROUTES 

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43 

Sixth — The  minimum  number  and  length  of  extensions  which  you  are  willing 
to  construct  at  the  order  of  the  Board  at  any  time  during  the  term  of  the  contract. 

You  are  asked  to  submit  your  proposition  with  the  understanding  that  the  Com- 
mittee shall  have  the  right  to  reject  any  proposition  you  may  make.  The  Commit- 
tee, however,  will  only  recommend  to  the  Board  the  grant  of  a  franchise  to  the 
company  which,  in  its  opinion,  offers  the  best  proposition  as  to  adequate  service, 
rate  of  fare  and  compensation  to  the  City,  and  is  able  to  demonstrate  that  a  grant 
to  it  will  best  serve  the  interests  of  the  City  and  the  traveling  public. 

Your  proposition  should  be  submitted  to  his  Honor,  the  Mayor,  Chairman  of 
the  Franchise  Committee,  on  or  before  12  o'clock  noon,  June  1,  1915,  on  which  date 
the  propositions  of  all  the  companies  will  be  opened.  The  envelopes  should  be 
marked  "Proposition  of  the  Company  for  motor  bus  opera- 
tion." 

By  order  of  Franchise  Committee. 

JOHN  PURROY  MITCHEL,  Mayor;  GEORGE  McANENY,  President,  Board 
of  Aldermen;  DOUGLAS  MATHEWSON,  President,  Borough  of  The  Bronx. 

James  D.  McG.\nn.  Secretary. 


